Sovereign Gold Bond Scheme 2023-24: First Tranche Subscription Period Commences On June 19 In India

The Government of India has unveiled the Sovereign Gold Bond Scheme for the fiscal year 2023-24, providing individuals with an opportunity to invest in gold in a secure and regulated manner.

The Centre has decided to issue the next round of Sovereign Gold Bonds (SGBs) for the current fiscal year. The government has scheduled the issuance of two tranches of gold bonds during the initial half of the ongoing fiscal year.

The first tranche, 2023-24 Series I, will be released beginning June 19 and will last until June 23. The Reserve Bank of India (RBI) indicated in a statement that the second issue, 2023-24 Series II, will be released between September 11 and 15, 2023. The Series I issuance date is June 27, while the tranche II issuance date is September 20, according to the RBI notice.

Features

Eligibility

The SGBs will only be available for purchase by residents, HUFs, Trusts, Universities, and Charitable Institutions..

Tenor

The SGB will have an eight-year term, with an option for early redemption after the fifth year to be exercised on the date interest is due.

Every fiscal year (April-March), the maximum subscription limit for individuals is 4 kilograms, 4 kg for HUF, and 20 kg for trusts and similar businesses, as set by the Government from time to time. Investors will be requested to sign a self-declaration to that effect when submitting a subscription application.

Interest rate

The investors will be compensated at a fixed rate of 2.50 percent per year on the nominal value, payable semi-annually.

Payment option

The SGBs will be paid for in cash (up to 20,000), cheque, demand draft, or electronic banking.

Issue price

The price of SGB will be set in Indian rupees based on the simple average of the closing price of 999 pure gold provided by the India Bullion and Jewellers Association Limited (IBJA) for the three working days preceding the subscription period. For investors that subscribe and pay online, the issue price of SGBs will be reduced by $50 per gramme.

SGBs, or Sovereign Gold Bonds, are issued by the Reserve Bank of India on behalf of the government as an alternative to purchasing physical gold. The Government introduced the SGB initiative in November 2015 as part of the Gold Monetisation initiative. The gold bonds can only be purchased by residents, HUFs, Trusts, Universities, and Charitable Institutions.

Tranche	Date of Subscription	Date of Issuance
2023-24 Series I	June 19 - June 23, 2023	June 27, 2023
2023-24 Series II	September 11-September 15, 2023	September 20, 2023

SGBs will be sold through Scheduled Commercial Banks (with the exception of Small Finance Banks, Payment Banks, and Regional Rural Banks), Clearing Corporation of India Limited (CCIL), designated post offices, Stock Holding Corporation of India Limited (SHCIL), and recognised stock exchanges, namely the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.