For Quick Alerts
For Daily Alerts

How To Invest In The Sovereign Gold Bond Scheme Recently Issued By The RBI?


The RBI has recently issued the Sovereign Gold Bond (SGB) Scheme 2021-22 - Series V for the subscription. This tranche will be open from today (9th August) to 13th August 2021. The gold price will be working out to Rs. 4790 per 1 gram gold. The nominal value of the bond is based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period. Investors who will apply online will be offered an additional discount of Rs. 50 per gram lesser than the nominal value. For them, the issue price of a gold bond will be Rs. 4740 per 1 gram gold.

How To Invest In The Sovereign Gold Bond Scheme Recently Issued By The RBI?

How to start the investment procedure?

As the RBI has issued its fifth tranche of SGB scheme investors are eyeing for it - consistently decreasing gold prices now are winding up more people towards gold investments.

The procedure to invest in SGB starts with filling up the application form of SGB. The application form is provided by the issuing banks or Stock Holding Corporation of India Limited (SHCIL) offices or designated Post Offices or the agents. The form is also available at the RBI's official website. Banks now also provide online application facilities.

The application form must be accompanied by the Know-Your-Customer (KYC) norms. It will require a 'PAN Number' issued by the Income Tax Department to the investor.

The investor is allowed to hold only one 'unique investor Id' linked to any of the prescribed identification documents. The unique investor ID will be used for all subsequent investments in the scheme. quoting of PAN in the application form is mandatory for holding securities in the dematerialized (Demat) form. A given mail ID will receive a confirmation mail after confirming the buy.

In case of the investment through SBI, the application form is available on the SBI's official website ( under e-services. Similarly, on the other banks' websites, the form will be available. Else the investors can contact their concerned bank's branch directly to invest in SGB.

SGBs are also listed on the exchange 10-15 days after the issue and can be traded. If an investor wants to buy SGB via Zerodha at the exchange, they will have to log in to their Zerodha account first. Then the page 'Invest in gold bond and ETFs' will have to be reached. One has to be sure of having sufficient funds in the equity account on the last day of the issue. Then under SGB, the price, quantity to invest (units of SGB), and offer dose will have to be filled. Thus an investor can place the required order. Units will be allotted to the Demat account within 10 working days and a confirmation e-mail will be sent.


Who can invest in SGBs?

A person resident in India is eligible to invest in SGB. Eligible investors include individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions. Individual investors with subsequent changes in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.
Joint holding of SGB is allowed. Additionally, guardians can also apply for SGB on behalf of a minor for the child's future.

The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond is one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF), and 20 kg for trusts and similar entities. In the case of joint holding, the limit is 4 kg. The annual ceiling will include bonds subscribed under different tranches during initial issuance by the government and those purchased the same from the secondary market.

Benefits of SGB

The Bonds bear interest at the rate of 2.50% per annum (half-yearly basis) on the amount of initial investment. The last interest will be payable on maturity along with the principal.

There will no capital gain tax on redemption and it can be used as collateral for loans. For SGB there is no financial pressure of making charges or GST or storage costs. SGB offers an easy liquidity option as it can be traded in the secondary market.

Read more about: sgb sovereign gold bond rbi
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X