SGB 2023 to open for subscription from December 18 to 22
The government is going to issue two new installments of Sovereign Gold Bond. The first installment will be released in December and the second installment in February. The first installment will open on 18-22 December. Whereas the second installment will open on 12-16 February. However, information at what rate these will be issued has not been given.
What is Sovereign Gold Bond?
Sovereign Gold Bond is a government bond. It can be converted into demat. This bond is of 1 gram of gold, that is, the price of the bond will be the same as the price of 1 gram of gold. It is issued by RBI. You will get a discount of Rs 50 per gram on applying online and making digital payment.
Investment in 24 carat i.e. 99.9% pure gold
In Sovereign Gold Bond you invest in 24 carat i.e. 99.9% pure gold. Investments in SGBs earn an annual interest of 2.50%. If money is needed, a loan can also be taken against the bond.
The price of the bond is decided on the basis of the published rate of Indian Bullion and Jewelers Association Limited i.e. IBJA. In this, the average of the rates of the last three days of the week preceding the subscription period is calculated.
No worries about purity and safety
There is no need to worry about accuracy in SGBs. According to the National Stock Exchange (NSE), the price of gold bonds is linked to the price of gold of 24 carat purity published by the Indian Bullion and Jewelers Association (IBJA). Along with this, it can be kept in the form of demat, which is quite safe and there is no expense on it.
You can invest in maximum 4 kg gold
Through SGBs, a person can invest a minimum of 1 gram and a maximum of 4 kilograms of gold in a financial year. In case of joint holding, the investment limit of 4 kg will be applicable on the first applicant only. Whereas the maximum limit of purchase for any trust is 20 kg.
Tax has to be paid on selling bonds before 8 years
The maturity period of Sovereign is 8 years. After completion of the maturity period, there is no tax on the profits made from it. Whereas if you withdraw your money after 5 years, then the profit arising from it is taxed at 20.80% in the form of Long Term Capital Gain (LTCG).
You can invest offline also
RBI has given many options for investment in it. Investments can be made through bank branches, post offices, stock exchanges and Stock Holding Corporation of India (SHCIL). The investor has to fill an application form. After this, money will be deducted from your account and these bonds will be transferred to your demat account.
It is mandatory to have PAN to invest. These bonds will be sold through all banks, Stock Holding Corporation of India Limited (SHCIL), recognized stock exchanges, National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).
128% return to investors of the first series of sovereign gold bonds
The first series of Sovereign Gold Bond has matured on 30 November. These bonds were issued on November 26, 2015 at an issue price of Rs 2,684 per gram. The holder redeemed it at Rs 6,132 per unit. Accordingly, the total return given in the last 8 years was 128.5%.
