Eligibility and pricing
According to ET, investors, including individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions, are eligible to invest in Sovereign Gold Bonds (SGBs).Individual investors who experience a change in residential status from resident to non-resident can still hold SGBs until early redemption or maturity.
The nominal value of the bond stands at Rs 6,263 per gram of gold, calculated based on the simple average of closing prices for gold of 999 purity over the final three working days preceding the subscription period, namely February 07, February 08, and February 09, 2024.
For investors applying online, there is a discount of Rs 50 per gram less than the nominal value. Therefore, the issuance price of the Gold Bond for online applicants would be Rs 6,213 per gram of gold.
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Features of Sovereign Gold Bond Series-IV (2023-24):
The SGB has a tenor of 8 years. Investors have the option to apply for premature withdrawal after 5 years. There are maximum subscription limits per fiscal year (April to March) set at 4 kg for individuals, 4 kg for HUFs, and 20 kg for trusts and similar entities notified by the government from time to time.
Where to buy SGB
SGBs will be available for purchase through Scheduled Commercial banks (excluding 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 recognized stock exchanges like the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.
Here are five ways you can invest in the latest Sovereign Gold Bond Series-IV (2023-24)
Online via net banking
Here’s how to purchase SGBs online via HDFC Bank net banking:
- Log in to your HDFC net banking account.
- Navigate to the ‘Offers’ tab in the menu bar.
- Click on ‘Buy now’ on the SGB banner. (Note: If there’s no active SGB subscription, the banner won’t appear.)
- Click ‘Ok’ on the pop-up message.
- Another pop-up will appear regarding activating your demat account for receiving SGBs. Click ‘Ok’.
- Your basic details like customer ID, name, DOB, address, and PAN number will be auto-filled.
- Enter the desired amount of gold units you wish to purchase.
- Provide nominee details.
- Tick the ‘I have read and understand terms & conditions’ box. Then, click on the ‘Generate OTP’ button.
- Submit the OTP received on your mobile number to complete the transaction.
Through mobile apps
Here are the steps to purchase SGBs using the ICICI Bank mobile banking app:
- Log in to the ICICI Bank mobile banking app.
- Choose the ‘Invest and Insure’ option.
- Select ‘Sovereign Gold Bond’ from the available investment options.
- Specify the desired quantity in grams and proceed to make the payment.
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Using investment platforms
Here’s a simplified guide for investing in Sovereign Gold Bonds through the Upstox app:
- Switch to ‘Upstox for investors’ from the ‘Account’ section if you’re currently in ‘
Upstox Pro for traders’ mode. - Navigate to the homepage or More section and click on ‘Invest in Gold’.
- In the ‘Explore’ section, locate the open Sovereign Gold Bond (SGB) series you want to invest in.
- Review the details of the SGB and click on the ‘Apply’ button.
- Select the desired number of units you wish to purchase and proceed with the transaction.
Physically at banks or post offices
You can invest in SGB by visiting a bank branch or designated post office. Simply fill out the required form with your desired units and other necessary details. Submit the form along with a cheque or demand draft for payment. Make sure to attach copies of your PAN card and Aadhaar card as well.
Retail direct website
Here’s a simple guide for registering for the Retail Direct Gilt Account:
- Visit https://rbiretaildirect.org.in and click on “Open RBI Retail Direct Account.”
- Click on “Register here.”
- Choose your account type and provide details such as Name, PAN, and Date of Birth.
- Verify your email and mobile number with the OTP sent and enter your preferred login name.
- After clicking “Preview and Submit,” a preview page will open.
- To start the KYC procedure, click “Initiate KYC.” You’ll find two options for KYC on the following page.
- Use your PAN to search for information. If your PAN is not available in the CKYC database, an error message may appear.
- Review the CKYC information on the screen and click “SUBMIT.”
- Fill out “ADDITIONAL PERSONAL DETAILS” on the next page and make a declaration under FATCA and PMLA.
After submitting the application, the investor can check the terms and conditions and the signer’s name. Then, they’ll receive a letter with instructions on digitally signing the Terms and Conditions using an Aadhaar-enabled OTP. Once registered, investing in SGBs through the website becomes straightforward.
