What are SGBS?

What are SGBS?

Simply put, SGBs is a bond, backed by the government and issued by the Reserve Bank of India. It is denominated in units of gold. The minimum investment required is equivalent to 1 gm gold and its multiples thereafter. SGBs have a maturity of 8 years. They also have a lock-in period of 5 years, after which you can redeem the bond.

What is SGB scheme under RBI gold monetisation?

Sovereign Gold Bond Scheme was launched by Govt in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for subscription in tranches by RBI in consultation with GOI. RBI Notifies the terms and conditions for the scheme from time to time. The subscription for SGB will be open as per following calendar.

What is the maturity of an SGB?

SGBs have a maturity of 8 years. They also have a lock-in period of 5 years, after which you can redeem the bond. At the time of redemption or maturity, you will get the prevailing price of gold. SGBs offer a fixed interest rate of 2.5% per annum on the investment, which is credited to your account semi-annually.

When can I redeem my SGBS?

Though the maturity date is 8 years from the date of issue, the earliest redemption is allowed after 5 years. SGBs can however be traded on the Exchange. Can I sell my SGB investment before the lock-in period of 5 years?