Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

India announces new tranches of Sovereign Gold Bonds

Published Dec 10, 2023 00:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
NSEI
+0.04%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BSESN
+-0.01%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

NEW DELHI - The Indian Government, in partnership with the Reserve Bank of India (RBI), has announced the upcoming issuance of Sovereign Gold Bonds (SGBs) in two separate series. The Series III tranche will be available from December 18 to December 22, 2023, with an issuance date set for December 28. Following this, the Series IV tranche will open for subscription from February 12 to February 16, 2024, and will be issued on February 21.

These bonds will be accessible for purchase through select banks (excluding Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), post offices, and recognized stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

The SGBs carry an eight-year tenor with an option for early redemption after five years on dates when interest is payable. Investors have the flexibility to buy these bonds using various payment methods including cash (up to ₹20k), demand draft, cheque or electronic banking. The pricing of the bonds is determined based on the average closing price of gold provided by the Indian Bullion Jewellers Association (IBJA) prior to the subscription week. Additionally, subscribers who opt for digital mode or online purchases are entitled to a discount of ₹50 per gram.

Investors in SGBs receive a semi-annual interest at a rate of 2.50%, which is subject to tax under current regulations. However, capital gains arising from redemption are exempt from tax under the provisions of the Income Tax Act. For long-term capital gains arising from transfers, indexation benefits are applicable.

The government has set annual investment limits for these bonds at four kilograms for individual investors and Hindu Undivided Families (HUFs), and 20 kilograms for trusts and other entities. This initiative is part of a broader strategy by the Indian Government to offer alternative forms of investment in gold and to reduce physical demand for the precious metal.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

India announces new tranches of Sovereign Gold Bonds
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email