Sovereign Gold Bonds are Government securities denominated in multiples of gram(s) of gold (1 unit = 1 gram). These Bonds are issued by the Reserve Bank of India on behalf of the Government of India and will be tradable on stock exchange. They are a substitute for investment in physical gold.
Issue Details
- Issue Closes on: Friday, 9th September 2016
- Price of Gold: Rs 3150/-
- Minimum investment: 1 gram
- Maximum investment: 500 grams
- Tenure: 8 years with an exit option from 5th year onwards
- Key Features of Sovereign Gold Bonds
- SGBs are Government securities denominated in grams of gold (1 unit = 1 gram)
- Issued by the Reserve Bank of India on behalf of the Government of India
- Earn returns linked to gold price.
- Get a fixed interest of 2.75% p.a. payable semi-annually on the amount of initial investment from date of bidding
- Bonds will carry sovereign guarantee both on redemption amount and on the interest
- Easy Exit Option - The tenor of the bond is for 8 years with an option to redeem from 5th year onwards on the date on which interest is payable
- Bonds will be tradable on NSE and BSE
- Advantages of investing in Sovereign Gold Bond scheme (SGBs)
- Safety: Zero risk of handling physical gold
- Interest: Fixed interest of 2.75% on the initial investment from date of bidding.
- No TDS applicable on interest
- Indexation benefit if bond is transferred before maturity
- Capital gain tax exempt on redemption
- Assurance of Purity
- Tradable on Exchange
- Ease of Borrowing Loan: Can be used as collateral for loans
Check latest gold rates here.
