Sovereign Gold Bond Scheme 2023-24   (Series 2)  

SGB Series 2 - Price

SGB 2023-24 Series 2 will be issued at ₹5,923/- per gm for offline buyers & ₹5873/- per gm for online buyers.

SGB Series 2 - Dates

SGB 2023-24 Series 2 will be open for investment from September 11-15, 2023 & will be allotted on September 20.

How is the SGB Issue Price Determined?

The issue price is the average closing price of 99.9% pure gold over the last 3 business days, as published by the IBJA.

What are SGBs?

SGBs are RBI issued government securities in 1g of gold denominations. SGB price is linked to the market price of gold.

Benefits of SGBs

RBI backed investment. Alternative to physical gold without storage costs and making charges. Fixed interest income of 2.5% annually. Tax Benefits.

SGB Maturity & Exit Options

SGBs have 8 year maturity period. However, you can redeem & sell SGBs after 5 years subject to 20% LTCG + indexation benefits.

Where to Buy SGBs Online?

Commercial banks Post Office SHCIL Stock Exchanges (Brokers) You can get a Rs. 50/gram discount online.

How to Apply Online?

Visit the website of your bank, broker or SHCIL. Click the SGB link. Select the quantity. Pay the issue price online. Submit the application.

Where to Buy SGBs Offline?

Commercial banks Post office Stock Exchanges (Brokers)

How to Apply Offline?

Visit bank or post office branch. Submit the application form and required documents. Pay the issue price in cash, DD, cheque, or e-banking. Take application receipt.

SGB Status Online & Offline

The units will be in the demat if subscribed online.  For offline purchases, an investment certificate will be provided.

Who can Invest in  SGB?

Individuals, HUFs, universities, charitable institutions & trusts.  Individuals turned into NRIs can hold SGB till early redemption/maturity.

Minimum/Maximum Investment

Minimum investment - 1 gm. Individuals & HUFs can invest maximum 4 kgs. Charitable institutions & trusts can invest maximum 4 kgs.

SGBs Tax Treatment

The 2.5% interest income is taxed per your applicable tax slab. Capital gains on SGBs, held till maturity, are tax-exempt.

Capital Gains Tax on SGBs

If sold before maturity, there will be a tax on STCG according to income slab & LTCG of 20%+ indexation benefits.

Conclusion

SGBs provide an excellent way to invest in gold without storage hassle. The interest payment above capital gains adds a security layer to balance gold price volatility.

Malabar Gold Scheme 2023: All You Need to Know

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