Sovereign Gold Bond 2023-24 Series 3 To Open On Dec 18: Here's How To Invest In SGBs

Gold investors can invest in the Sovereign Gold Bond (SGB) Scheme 2023-24 Series-3 starting upcoming Monday as the SGB scheme will open for investment from December 18 to December 22. The Reserve Bank of India (RBI) has fixed the issue price for gold bonds with 999 purity at Rs 6,199 per gram.

The minimum permissible investment limit for an individual is set at 1 gram of gold, while the maximum subscription limit is 4 kg. However, trusts and similar entities can subscribe for up to 20 kg each fiscal year.
Investors can get the Sovereign Gold Bonds in demat form. A specific request for the same must be made in the application form itself. Till the process of dematerialization is completed, the bonds will be held in RBI's books. The facility for conversion to demat will also be available subsequent to the allotment of the bond.

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by the Reserve Bank on behalf of the Government of India. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewelry form. The bonds are held in the books of the RBI or in demat form eliminating the risk of loss of scrip etc.

Can you apply online for Sovereign Gold Bonds?

Yes. A customer can apply online through the website of the listed scheduled commercial banks. The issue price of the Gold Bonds will be Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

Six different ways to invest in SGBs:

1. You can invest in SGB Online through net banking.
2. Through the mobile application of your bank.
3. By visiting a bank branch or designated post office physically.Fill the form along with units and submit it along with a Cheque or DD to make payment. Attach your Aadhaar Card and PAN card also.
4. Download the Upstox app to apply for SGBs
5. Apply through Paytm Money
6. Through RBI Retail direct website

How to buy SGB online via SBI net banking

How to register for Sovereign Gold Bond (SGB) via SBI net banking?

Step 1: Login to SBI Net Banking using credentials
Step 2: Click on 'e-Service' from main menu
Step 3: Click on ' Sovereign Gold Bond Scheme'
Step 4: You should register if you are a first-time investor. Select 'Register,' from the header tab then 'Terms and Conditions,' then 'Proceed.'
Step 5: Submit all your details that are not auto-filled. Add nomination and other details.
Step 6: Select the Depository participant from NSDL or CDSL where your demat account is held.
Step 7: Enter DP ID, and Client ID and click 'Submit' tab
Step 8: Confirm the details and click ' Submit' tab

Why you should invest in SGBs?

1) Assured returns of 2.5% per annum payable half-yearly
2) No storage issues like physical gold
3) Zero Capital Gain Tax on redemption
4) Liquidity
5) Can be used as collaterals for loans
6) Zero GST and making charges