Sovereign Gold Bond Scheme 2022-23: SGB Series 2 Buy Online, Dates

Sovereign Gold Bond Scheme Interest Rate, Benefits | Buy SGB Online , Sovereign Gold Bond Scheme 2022-23 Series 2 Subscription, Issue Date | The Reserve Bank of India has released the dates for the Sovereign Gold Bond Scheme SGB ​​second subscription tranche. The second series of the SGB program will begin on August 22 and end on August 26, according to the notification. The issue price has not yet been made public. This year’s SGB scheme’s first series was launched from June 20 to June 24.

Sovereign Gold Bond Scheme

Sovereign Gold Bond Scheme 2022-23

Government securities called Sovereign Gold Bonds, which the RBI issues, serve as a stand-in for actual gold. These SGBs are issued numerous times a year and are valued in grams. The issue price for each series is controlled by the top financial institution. A secondary market or during the series are both options for buying and selling. Click to know more details about buying and selling on “GeM Portal”

Can anyone invest in Sovereign Gold Bond Scheme?

Trusts, educational institutions, charitable trusts, and Hindu Undivided Families are among the investors that are eligible to invest in the SGB tranche (HUFs). Also qualified to invest is a resident of India as specified by the Foreign Exchange Management Act of 1999. The person can hold SGBs till early maturity in the event that their residence changes to somewhere else in the world.

Sovereign Gold Bond Scheme 2022-23 Series I Details

The bond’s nominal value is determined by the simple average closing price for 999-purity gold on the final three business days of the week prior to the subscription period, or June 15, June 16, and June 17, 2022, as reported by the India Bullion and Jewelers Association Ltd (IBJA).

The Government of India has decided, after consulting with the Reserve Bank of India, to give investors who apply online and pay for their application through a digital channel a discount of 50/- per gram less than the nominal value. Such investors will pay Rs. 5,041/- (Rupees Five Thousand and Forty-One only) for each unit of a Gold Bond.

e-RUPI Digital Payment

Sovereign Gold Bond Scheme Denomination

The SGBs will be measured in multiples of grammes of gold, with one gramme serving as the base unit.

What is the Tenor of SBG

The SGB will have an eight-year term with an early redemption option available following the fifth year on the interest due date.

Minimum Investment Size

One gram of gold will be the minimum investment that is permitted.

Maximum Investment Limit

According to the government’s periodically updated regulations, each person may subscribe up to 4 kilogrammes, HUFs up to 4 kg, and trusts and other similar organizations up to 20 kg per fiscal year (April-March). A self-declaration to this effect will be received. SGBs purchased on the secondary market and those subscribed to under various tranches will be included in the annual ceiling.

Sovereign Gold Bond Scheme Benefits

SGBs are quite advantageous, which makes for a very profitable purchase. Since the investor has no need to physically retain or store the gold, both the storage and security issues are eliminated. Additionally, the investor receives their money back at the current gold market rate. As a result, the investor has more control over the timing and price of gold redemption.

Masked Aadhaar Card

Joint Holder

The 4 KG investment restriction only applies to the initial application in a joint holding scenario.

What is the SGB Issue Price?

As stated by the India Bullion and Jewelers Association Limited, the price of SGB shall be set in Indian Rupees using a simple average of the last three working days of the week before to the subscription period (IBJA). The issuance price of the SGBs would be reduced by Rs. 50 per gramme for investors who subscribe online and pay digitally.

Redemption Cost for SGB

Based on a straightforward average of gold 999 pure closing prices provided by IBJA Ltd over the previous three working days, the redemption price will be expressed in Indian Rupees.

Where to Purchase Sovereign Gold Bonds

Commercial banks, the Stock Holding Corporation of India Limited (SHCIL), the Clearing Corporation of India Limited (CCIL), designated post offices (as may be announced), and recognized stock exchanges, namely the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited, will all be used to sell SGBs either directly or through agents.

Sovereign Gold Bond Scheme Interest Rate

The nominal value will be paid to investors at a fixed rate of 2.50 per cent annually, payable every other year.

SGB ​​as Collateral

The SGBs may be used as loan security. It is necessary to fix the loan-to-value (LTV) ratio at the same level as the Reserve Bank’s standard gold loan.

Documents for KYC.

The same know-your-customer (KYC) guidelines as for buying physical gold will apply. Voter identification, an Aadhaar card, a PAN card, a TAN card, a passport, and other KYC documents would be needed. Every application must be accompanied with the “PAN Number” that the Income Tax Department issues to individuals and other companies.

Tax treatment for SGB

According to the requirements of the Income Tax Act of 1961, interest on SGBs is taxable (43 of 1961). The capital gains that result from an individual’s redemption of SGB are not subject to tax.

The transfer of the SGB will result in long-term capital gains that are eligible for indexation benefits.

Sovereign Gold Bond Scheme Eligibility

The Sovereign Gold Bond Scheme requires that participants meet the following straightforward qualifying requirements.

Indian resident – The Foreign Exchange Management Act of 1999 established the eligibility requirements, and this program is exclusively available to Indian residents.

Individuals/groups – As long as they are Indian residents, individuals, associations, trusts, HUFs, etc. are all eligible to invest in this scheme. One may invest in bonds jointly with other qualifying participants under the scheme.

Minors – Parents or guardians may acquire this bond on behalf of minors.


How much may I invest, in minimum and maximum amounts?

The minimum amount of gold required to issue a sovereign gold bond is one gramme. Depending on the investor, there are different upper limits. The weight restriction for organizations like trusts and universities is 20 kilos.This restriction is set at 4 kg for people and HUFs.

How to pay using SGB.

Demand drafts, checks, electronic banking, and cash (up to a maximum of Rs. 20,000) are all acceptable payment methods for SGBs.

What Is the Scheme’s Bond Period?

The bond has a total tenor of eight years. After the fifth year, but not before, investors have the opportunity to leave the bond.

Is Trade allowed for SGB?

The SGBs will be allowed to trade.