Sovereign Gold Bond Scheme: The latest Sovereign Gold Bond (SGB) tranche will open for subscription on June 19 and will close on June 23, 2023. The Reserve Bank of India (RBI) has kept the settlement date of this tranche of Sovereign Gold Bond Scheme 2023-24 Series as June 27, 2023.
Sovereign Gold Bond Scheme 2023-24 Series I – Issue Price
The issue price of the SGB Series I during the subscription period will be Rs 5,926 per gram, according to an RBI press release issued on June 16, 2023.
How is price calculated?
The bond’s nominal value is based on the simple average of the closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity on the last three working days of the week preceding the subscription period, namely June 14, June 15, and June 16, 2023, which works out to 5,926/- (Rupees Five thousand nine hundred and twenty six only) per gram of gold.
Discount on subscription
In collaboration with the Reserve Bank of India, the Government of India has agreed to offer a discount of Rs 50 per gram on the issue price to investors who apply online and pay in digital manner.
The issue price of a Gold Bond for such investors will be Rs 5,876 per gram of gold.
Payment option
Payment to buy SGB can be made in cash up to Rs 20, 000 for higher amounts in draft, cheque or electronic banking
- Where can investors buy SGB
- SGBs will be sold through following channels
- 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 (as may be notified) and
- Recognised stock exchanges either directly or through agents
SGB interest
The investors will be paid at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.
Tax treatment
According to the provisions of the Income Tax Act of 1961 (43 of 1961), interest on SGBs will be taxed. The capital gains tax arising on redemption of SGB to an individual is exempted. Long-term capital gains resulting from the transfer of SGBs will be eligible for the indexation benefits.
