As part of its fiscal planning for the year 2023-24, the Indian Government, in collaboration with the Reserve Bank of India (RBI), has unveiled the upcoming tranches of the Sovereign Gold Bond (SGB) Scheme. The Economic Times reports that investors keen on participating in the SGB Series III can subscribe from December 18 to December 22, 2023, with the bonds scheduled for issuance on December 28, 2023. Additionally, the subscription window for Series IV is set from February 12 to February 16, 2024, with bonds to be issued on February 21, 2024.
Key Details of Sovereign Gold Bond Series III and IV:
- Subscription Period:
- Series III: December 18 to December 22, 2023
- Series IV: February 12 to February 16, 2024
- Issuance Dates:
- Series III: December 28, 2023
- Series IV: February 21, 2024
- Denomination and Tenure:
- Each SGB is denominated in multiples of one gram of gold.
- Tenure is set at eight years, with an option for early redemption after the fifth year on interest payment dates.
- Availability:
- Bonds can be obtained through Scheduled Commercial Banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognized stock exchanges.
- Pricing and Discounts:
- SGB pricing determined by the simple average of the closing price of gold (999 purity) published by IBJA for the last three working days before the subscription period.
- Online subscribers using digital payment methods receive a discount of Rs 50 per gram.
- Interest and Taxation:
- Investors earn an annual interest of 2.50%, payable semi-annually on the nominal value.
- While SGB interest is taxable, capital gains from redemption are exempt, and long-term gains from transfers qualify for indexation benefits.
- Subscription Limits:
- 4 kg for individuals and HUFs; 20 kg for trusts and similar entities per fiscal year, including bonds purchased in various tranches and on the secondary market.
Conclusion: Sovereign Gold Bonds continue to be an attractive investment avenue for those seeking the dual benefits of gold exposure and steady returns. With the upcoming Series III and IV, investors have the opportunity to participate in a government-backed scheme that aligns with their financial goals.
Disclaimer: The above information is for informational purposes only and should not be considered as financial advice. Readers are encouraged to consult with financial professionals for personalized guidance.
