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Sovereign Gold Bond 2023-24 Series IV opens today: Check issue price, interest rate and other details of SGB tranche

sovereign gold bond New Issue: The fourth tranche of Sovereign Gold Bond (SGB) is now open for subscription. Investors can buy the bonds at a price of Rs 6,263 per gram. Additionally, those applying online will get a discount of Rs 50 per gram, taking the issue price to Rs 6,213 per gram. Subscription period for SGB The issue will expire on February 16 and the bonds will be issued on February 21.
According to the ET report, payment for SGB can be made through cash payment or demand draft, check or electronic banking up to a maximum of Rs 20,000.
The price of SGB is determined based on the average closing price of gold of 999 purity over the last three business days published by the India Bullion and Jewelers Association Limited (IBJA). For this tranche, the average price is calculated from February 7 to February 9, 2024.
The Reserve Bank of India (RBI) had earlier announced two new issues of the Sovereign Gold Bond Scheme for the year 2023-24, one in December and the current tranche in February.
Sale of SGBs is limited to resident individuals, HUFs, trusts, universities and charitable institutions. The bonds are denominated in multiples of grams, with minimum investment of one gram and maximum limit of 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per financial year. In case of joint holding, the investment limit of Rs 4 kg is applicable to the first applicant.
The tenure of the bond is 8 years, with an option for premature redemption after the 5th year, which can be exercised on the interest payment date.
The Sovereign Gold Bond Scheme was launched in November 2015 to encourage financial savings and reduce the demand for physical gold.
Additionally, RBI has announced premature redemption of SGB 2018-19 Series VI bonds at a price of Rs 6,263 per gram. Premature redemption is permitted after completion of fifth year from the date of issue. The redemption price is based on the average closing price of gold of 999 purity in the last three business days from February 7 to February 9, 2024.

Sovereign Gold Bond (SGB) 2023-24 Series IV Details:

  • Membership period: February 12 – February 16, 2024
  • Release date: February 21, 2024
  • SGB ​​2023-24 Series IV is priced at Rs 6,263. Online payment processing fee of Rs 50 will be deducted, resulting in an adjusted issue price of Rs 6,213.
  • Investors in the current series receive a fixed interest rate of 2.5% per annum, paid semi-annually on the nominal value. This fixed interest remains unaffected by any change in the capital value of the gold bond.
  • The bonds will be available for purchase through banks, Stock Holding Corporation of India Limited (SHCIL), notified designated post offices and recognized stock exchanges including National Stock Exchange of India Limited and Bombay Stock Exchange Limited. Agent.

Benefits of Sovereign Gold Bond Schemes

As mentioned on the HDFC Bank website, the benefits of SGB are given below:

  • Attractive interest with asset appreciation opportunity (2.5%)
  • Redemption is linked to the price of gold
  • Elimination of storage risks and costs
  • Exemption from capital gains tax if held till maturity
  • Hassle Free: Ownership of gold without physical possession (no risk and storage costs)
  • Tax treatment: Redemption of SGB for an individual is exempted from capital gains tax. Indexation benefit is provided for long term capital gains on bond transfer.
  • Tradability: The bonds will be tradable on stock exchanges within a fortnight of issue as notified by the RBI.
  • Transferability: The bonds can be transferred by executing an instrument of transfer as per the provisions of the Government Securities Act.

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