Sovereign Gold Bonds (SGBs) are government securities denominated in multiples of grams of gold, serving as a substitute for investing in physical gold. To purchase these bonds, investors must pay the issue price to an authorized SEBI-registered broker. Upon redemption, the equivalent cash value is credited directly to the investor’s registered bank account.

These bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India and are traded on stock exchanges.

Key Features and Advantages:

• Earn market returns on gold plus a fixed 2.5% annual interest on the invested amount.
• Interest is credited semi-annually to the investor’s account, with the final interest payable upon maturity along with the principal.
• Bonds carry a sovereign guarantee (backed by the Government of India) on both the redemption amount and interest.
• Tradable on the National Stock Exchange of India (NSE).
• Eliminates the risks associated with handling physical gold.
• No Tax Deducted at Source (TDS) on interest payments.
• Capital gains tax is exempt upon redemption.
• Can be used as collateral for trading purposes.

Terms and Conditions:

• Eligibility: All Indian residents are eligible to apply.
• Quantity Limits: Minimum Quantity: 1 gram of gold and Maximum Quantity: 4000 grams (4 kg) of gold.
• Demat Requirement: Bonds are held in dematerialized form; hence, a Demat account is mandatory.
• Application Process: A scanned copy of the application form must be sent to support@stocko.in.
• Allotment: Bonds will be allotted within a fortnight and can be verified under your holdings.
• Application Details: Active and upcoming issues can be checked here

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