All You Need To Know About Sovereign Gold Bond

Outlook Money

What Is Sovereign Gold Bond

Gold-denominated government securities are known as SGBs. They act as stand-ins for actual gold. Cash is required from investors for the issue price, and when the bonds mature, they are redeemed in cash.


Who issues SGBs?

On behalf of the Indian government, the Reserve Bank is issues the bond.


Benefits of investing in SGB

Investors in SGB get an exemption from capital gains tax. That means the investor does not have to pay capital gains tax.



There is no GST and making a charge to be paid on buying or selling Sovereign Gold Bond.



If investors buy Sovereign Gold Bond online or through online payment, they get a discount of Rs 50 per gram. In such a situation, investors will have to pay only Rs 5,873 per gram.


Selling SGB

One can sell Sovereign Gold Bond through banks, Stock Holding Corporation of India Limited (SHCIL), post offices and stock exchanges i.e. BSE and NSE.

Compiled by Syed Muskan