Sovereign Gold Bond scheme(SGB)
Sovereign Gold Bonds are Government securities denominated in multiples of gram(s) of gold. They are substitute for investment in physical gold. To buy the bond, investor has to pay the issue price to an authorised SEBI Broker. On redemption, cash is deposited into the investor's registered bank account. These Bonds are issued by the Reserve Bank of India on behalf of the Government of India and are traded on stock exchange.
Key Features and Advantages.
- Gold's market returns + Fixed 2.5% per year on invested amount.
- Interest will be credited semi-annually to the investor's account and the last interest will be payable on maturity along with the principal.
- Bond carry sovereign guarantee(Guaranteed by Government of India) both on redemption amount and on the interest.
- Tradable on National Stock Exchange of India Limited.
- Zero risk of handling physical gold
- No TDS applicable on interest
- Capital gain tax exempt on redemption.
- Can be used as collateral for Trading.
Terms and Conditions
- All residents of indians can apply.
- Minimum Qty:- 1 Gram of Gold Maximum Qty:- 4000 Grams(4Kg) of Gold.
- Held in demat form so Demat account is mandatory.
- Need to send the scanned copy of Application form on firstname.lastname@example.org.
- Bonds will be alloted within a fortnight and same can be checked under holdings.
- Application and upcoming/Active issues can be checked here .
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