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Now Invest in SGB – Sovereign Gold Bond 2023-24 – Series IV

invest in sovereign gold bond - SGB

The Sovereign Gold Bond Scheme (SGB) is an investment scheme introduced by the Government of India, where investors can buy gold bonds issued by the Reserve Bank of India (RBI) on behalf of the Government of India.

These bonds are denominated in grams of gold and offer an alternative way for individuals to invest in gold without physically owning it. The scheme typically offers interest at fixed rates and provides capital gains linked to the price of gold. SGBs also provide investors with certain tax benefits compared to physical gold investments.

Sovereign gold bond scheme 2023-24 series IV will start from 12th feb 2024 to 16th feb 2024 and issue details are

Issue Price

Rs 6263/- per gram


Rs 50/- per gram

Start Date


End Date


Interest Amt

2.50% Annually

Minimum Qty

1 gram

Maximum Qty

4 kgs

In short, According to the RBI, SGBs have the following features:

  • Annual interest rate: 2.5% assured, regardless of changes in the price of gold
  • Tax-effective: Capital gains at maturity are tax-free, in contrast to actual gold
  • Assured returns: Assured returns of 2.50% p.a. payable half-yearly

Here are some key regulatory aspects of the SGB scheme:

1. RBI Guidelines: The RBI issues detailed guidelines outlining the features, terms, and conditions of the SGB scheme. These guidelines cover aspects such as eligibility criteria for investors, subscription process, issue price, interest rates, tenure, redemption, and other operational aspects.

2. Subscription Periods: The RBI announces specific subscription periods during which investors can apply for SGBs.

3. Issue Price: The issue price of SGBs is determined based on the prevailing market prices of gold.

4. Interest Rates: SGBs offer fixed interest rates payable semi-annually on the nominal value of the bonds.

5. Tenure and Redemption: SGBs have a maturity period of 8 years, with an option for premature redemption after the fifth year.

6. Taxation: SGBs offer certain tax benefits to investors, such as exemption from capital gains tax on redemption if held until maturity.

7. Secondary Market Trading: SGBs are listed on stock exchanges, enabling investors to buy and sell them in the secondary market.

8. Custody and Dematerialization: SGBs are issued in dematerialized form and held in electronic form by investors.

Overall, the regulatory framework ensures transparency, investor protection, and smooth operation of the Sovereign Gold Bond Scheme in India. Investors interested in participating in the scheme should carefully review the relevant guidelines and consult with financial advisors if needed.

Know about the Interest rate earned on SGB

The interest rate on Sovereign Gold Bonds (SGBs) is fixed and announced by the Government of India periodically for each series of bonds. The interest is paid semi-annually on the nominal value of the bonds. This time, the interest rate which is specified by the RBI on the sovereign gold bond is 2.50%.

The initial investment in these bonds will be credited to the investor’s bank account at a fixed annual interest rate of 2.50%. The remaining interest will be paid at maturity along with the principal.

The RBI had previously established an interest rate of 2.75% when it was first introduced. It should be noted that only the interest will be directly credited to the bank account and that the investor must provide bank account information at the time of application.


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Frequently Asked Question – Sovereign Gold Bond – SGB

  1. Who is eligible to invest in SGB?

Eligible investors include individuals, HUFs, trusts, universities, and charitable institutions.

  1. Whether joint holding will be allowed?

Yes, joint holding is allowed.

  1. Can a Minor invest in SGB?

Yes. The application on behalf of the minor has to be made by his/her guardian.

  1. Are there any risks in investing in SGBs?

There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.