The government will issue a tranche of sovereign gold bonds (SGBs) this month, and one more in February. The date for subscription for 2023-24 Series III is December 18-22, 2023, while Series IV is scheduled for February 12-16. The Bond is issued by the Reserve Bank on behalf of the Government of India.

Date of Subscription: December 18 – December 22, 2023

Date of Issuance: December 28, 2023

Date of Subscription: February 12 – February 16, 2024

Date of Issuance: February 21, 2024

Key things to know before investing in SGBs of these series

  1. The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks, and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
  • The SGBs will be restricted for sale to resident individuals, HUFs, Trusts, Universities, and Charitable Institutions.
  • The SGBs will be denominated in multiples of gram(s) of gold with a basic unit of One gram.
  • The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.
  • The maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for HUF, and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained from the investors at the time of making an application for a subscription. The annual ceiling will include SGBs subscribed under different tranches, and those purchased from the secondary market, during the fiscal year.
  • The price of SGB will be fixed in Indian Rupees based on a simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period. The issue price of the SGBs will be less by ₹50 per gram for the investors who subscribe online and pay through digital mode.
  • The investors will be issued a Certificate of Holding for the same. The SGBs will be eligible for conversion into demat form
  • The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
  • The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long-term capital gains arising to any person on transfer of the SGB.

Know-your-customer (KYC) norms will be the same as those for the purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN, or TAN /Passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to individuals and other entities