What is the Sovereign Gold Bond Scheme?
If you are looking to invest in gold then this is the ideal time for you. The Reserve Bank of India has introduced the SGB i.e. Sovereign Gold Bond plan. The plan was first launched in Nov 2015. The main objective of this plan is to reduce the demand for physical gold, that is, people should invest in more bonds than jewelry.
There is no possibility of any fraud and impurity in this plan. These SGBs will be matured after 8 years, that is, they can withdraw money after 8 years. Apart from this, there is an option to withdraw amounts even after 5 years.
Before we discuss the “How to buy the Sovereign Gold Bond through Axis Bank? “, let us briefly touch upon the features of bonds.
Also Read Sovereign Gold Bond Calculator : Return Calculation 2021
Salient Features of Sovereign Gold Bonds
- The bonds will be denominated in units of one gram and multiples thereof.
- In a fiscal year, an individual and HUF can invest for a minimum of 1gm and a max of 4kgs wherein for trusts and similar entities max ceiling is 20kgs.
- Investors will be paid interest on the initial investment at the rate notified by RBI for each tranche and is paid semi-annually.
- The redemption price will be decided on the average closing price of gold of 999 purity for the last 3 Business days from the date of redemption.
- Premature withdrawal is applicable only after the 5th year onward on the coupon payment date and is also tradeable if held in Demat form.
- Joint holding is allowed.
- As per the RBI guidelines, granting a loan on SGBs would be subject to the decision of the bank or financing agency.
Also Read Loan against Sovereign Gold Bond | Interest Rate | Eligibility
- The nomination facility is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007. A nomination form is available along with the Application form.
- Payment for the Bonds will be through cash payment (up to a maximum of Rs. 20,000) or demand draft or cheque or electronic banking.
- Know-your-customer (KYC) norms will be the same as that for the purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN, or TAN /Passport will be required.
Read More – Sovereign Gold Bond – Features
Upcoming Sovereign Gold Bond Dates
| S. No. | Tranche | Date of Subscription | Date of Issuance |
| 1. | 2023-24 Series I | June 19 – June 23, 2023 | June 27, 2023 |
| 2. | 2023-24 Series II | September 11-September 15, 2023 | September 20, 2023 |
Read More – Sovereign Gold Bond through SBI
Sovereign Gold Bond through Axis Bank
Time needed: 5 minutes
Follow the steps given below for buying SGBs through Axis bank
- Axis Bank Easy Pay
Go to https://easypay.axisbank.co.in/sgb link.
Note – As we can look at the SGB dates, The Bonds can be bought on the subscription dates only. RBI opens up a window of five days each. - Application Form
Generally, application forms ask for your existing SGB status, eligibility, contact details, guardian’s name in case you are a minor, and so forth.
You will be asked to enter the number of units you want to buy. However, You can look at the price of the unit in the “Issuance price per gram gold” field. - Bank Details
You will also be asked to put in bank details along with the nomination.
- Payment
Confirm the details on the next page and accept the “Terms and Conditions” and then go for a payment.
The issue price of the SGBs will be INR 50/- per gram less than the nominal value to those investors applying online and the payment against the application is paid through digital mode.
After successfully applying. You will see details on the next screen. Keep a note of the details to avoid any inconvenience in the future. However, you need to wait for the issue date to see the allotment in your bank account.
Read More – How to Buy & Sell Sovereign Gold Bond in Zerodha?
Sovereign Gold Bond through Axis Direct
- Log in to Axis Direct with your user ID and password and then click on the Trading tab.
- Click on IPO/ OFS
- Now navigate to the “Sovereign Gold Bond Scheme” option.
- Choose your SGBs delivery option, depository participant, select your a/c number and accept the terms and conditions.
- You can see the details such as the issue price. Enter the number of units that you want to invest in and click on ‘Next’.
- Verify your details and click on ‘Confirm and submit.
Read More – RBI Bonds 2021 vs Tax Saving Fixed Deposits vs Sovereign Gold Bonds
How to Sell Sovereign Gold Bonds?
The bonds Holder in dematerialized form can sell on the stock exchange if they need the amount before its maturity, i.e. before 5 years. However, if the Bonds are sold in the secondary market, then they will attract capital gains at the extant rates. Interest on SGBs is taxable like normal interest receipts at your applicable tax rate.
The price of the SGBs in the market will reflect the price of gold and the demand and supply of the SGBs.
The holder in physical mode has to first get it dematerialized before they can sell them on the stock exchange.
Read More – How to Buy Sovereign gold Bond from ICICI Bank or ICICI Direct?