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Sovereign Gold Bond through HDFC Bank & HDFC Securities – Demo | Certificate | Status

Sovereign Gold Bond through HDFC Bank & HDFC Securities

Investment in Sovereign Gold Bonds

SGBs i.e. Sovereign Gold Bonds are government-backed securities issued by the Reserve Bank of India on behalf of the Centre to attract investors. Sovereign Gold Bonds are also called Gold Bonds.
Investing in these bonds better investment option than physical gold to many market experts.
There are several reasons for it. First of all, the RBI offers a fixed assured rate of interest of 2.5 percent per annum on bonds.
Secondly, TDS does not apply to the interest of bonds and indexation benefits are provided to investors on the transfer of bonds.
The bonds are also considered superior to physical gold because of their market value, maturity, and periodical interest.
Before we discuss the “How to buy the Sovereign Gold Bond through HDFC Bank? “, let us briefly touch upon the features of bonds.

Also Read Sovereign Gold Bond Calculator : Return Calculation 2021

Top Features of Gold Bond Scheme

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  • 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.
  • It comes with the tenor of 8 years and one can exit at the end of 5 years onwards and can be exercised on the payment dates.
  • 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 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.
  • 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

When Can I Buy Sovereign Gold Bond?

S. No.TrancheDate of SubscriptionDate of Issuance
1.2022-23- Series IJune 20 – June 24, 2022June 28, 2022
2.2022-23 Series IIAugust 22 – August 26, 2022August 30, 2022

Read More – Sovereign Gold Bond through SBI

Is Demat Account Required for Sovereign Gold Bond?

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To buy SGBs, you no need to have an HDFC DEMAT account. You can buy the bonds from HDFC online banking without registering a DEMAT account. However, the HDFC DEMAT account is needed for selling these bonds, If you wish to sell these bonds before maturity.

Sovereign Gold Bond through HDFC Bank

Time needed: 5 minutes.

Follow the steps given below for buying SGBs through HDFC bank

  1. Login

    Log in to HDFC net banking with your user ID and password.
    Customers can invest in government-issued SGBs through NetBanking or Demat account and avail INR 50/- discount per gram.

  2. Buy SGBs Online

    Click on the Demat tab -> Buy Sovereign Gold Bond Online -> Buy Now

  3. Application Form

    Fill in the basic details such as personal details and units of bonds that you want to invest. Add nominee details.  

  4. Physical or DEMAT Form

    The SGBs can be held in the Demat account. A specific request for the same must be made in the application form itself. In other words, If you have an HDFC Demat account, you will get bonds in demo format, else you will get a physical/e-certificate.

  5. One-Time Password

    Click on ‘Generate OTP’.
    Add the OTP that you have received on your registered mobile number.

  6. Amount Blocked

    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.
    You can have only one unique investor Id linked to any of the prescribed identification documents. The unique investor ID is to be used for all the subsequent investments in the scheme. 

Read More – How to Buy & Sell Sovereign Gold Bond in Zerodha?

Sovereign Gold Bond through HDFC Securities

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  • First, log in to https://www.hdfcsec.com/ using your login credentials.
  • Now click on the “Other Product” option to invest in Sovereign Gold Bonds online.
  • 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. However, you need to wait for the issue date to see the allotment in your account.

Read More – RBI Bonds 2021 vs Tax Saving Fixed Deposits vs Sovereign Gold Bonds

Certificate

The holding certificate for SGBs will be mailed to your registered email ID in case you have opted for a physical form else it will reflect in your HDFC Demat account on the date of issuance of bonds.  You can collect the ‘Certificate of Holding’ from your nearest HDFC branch if you do not have an email ID.

Can I Sell Sovereign Gold Bonds Before Maturity?

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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? 

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