The Sovereign Gold Bonds 2023-24 Series IV will be available for subscription for five trading days, starting on February 12, 2024, and ending on February 16, 2024. Those who successfully apply will receive the Sovereign Gold Bonds (SGBs) on February 21, 2024.
The Reserve Bank of India (RBI) will announce the price of the bonds soon. The price in Indian rupees will be fixed depending on a simple average closing price of gold of 999 purity, published by the India Bullion and Jewellers’ Association Ltd (IBJA) for the prior 3 working days of the week before the subscription period.
For those looking forward to subscribing online and making payments via the digital mode, the issue price will be reduced by Rs 50 per gram.
Typically, SGBs are Government Securities (G-Secs) denominated in grams of gold. They act as a substitute for investing in physical gold. Investors can pay the issue price in cash, and the bonds will be redeemed in cash at the time of maturity.
Upon subscription, investors will receive a Certificate of Holding on the issuance date, and these bonds can be converted into the demat (dematerialised) form.
The bonds bear interest at the rate of 2.5% at a fixed rate per annum on the initial investment amount. Interest is normally credited semi-annually to the investor’s bank account, and the last interest will be paid on maturity in addition to the principal.
To facilitate accessibility, SGBs will be available via scheduled commercial banks; this does not include small finance banks, payment banks, regional rural banks, Stock Holding Corporation of India (SHCIL), Clearing Corporation of India (CCIL), designated post offices, the National Stock Exchange (NSE), and the BSE.
The process to acquire SGBs in online mode:
Step 1: First, log in to the net-banking account.
Step 2: Select ‘e-Service’ from the main menu, followed by choosing Sovereign Gold Bond.
Step 3: First-time investors are required to register, review the Reserve Bank of India’s (RBI’s) terms and conditions, and proceed accordingly. Enter the necessary information for the SGB scheme and the depository participant from the National Securities Depository Ltd (NSDL) or Central Depository Services (India) Ltd (CDSL), which hosts the demat account.
Step 4: Submit the registration form.
Step 5: Click on the ‘Purchase’ option in the header tab after registration.
Step 6: Key in the subscription quantity and nominee details.
Step 7: Enter the one-time password (OTP) sent to the registered mobile phone to complete the process finally.
Besides the online mode, SGBs can also be obtained from the secondary market beyond the subscription window. Also, investors can look forward to primary issuances by stock exchanges or the RBI for continued investment opportunities in SGBs.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.
