Sovereign Gold Bond Series IV 2023-24: The issue price for the last subscription of the Sovereign Gold Bonds (SGBs) 2023-24 Series IV has been fixed to Rs 6,263 per gram of gold, the Reserve Bank said in a statement on Friday. The Sovereign Gold Bond Scheme 2023-24 – Series IV will be open for subscription on February 12 and continue till during February 16, 2024. The issuance is scheduled for February 21, 2024.
“The nominal value of the bond … works out to Rs 6,263 per gram of gold,” the central bank said in a statement.
The Government of India, in consultation with the Reserve Bank, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and making the payment against the application through digital mode. For such investors, the issue price of Gold Bond will be Rs 6,213, the RBI said.
The SGBs are denominated in grams of gold multiples, with a fundamental unit of one gram. The tenor of the SGB is eight years and investors do have an option for premature redemption after the fifth year, which can be availed of on the date interest is payable.
The last tranche, Sovereign Gold Bond Series 2023-24 Series III, subscription period opened on December 18 and closed on December 22, 2023. The date of issuance in SGB Series III was December 28, 2023. Before that two more tranches were floated in June 2023 and September 2023.
Tranche Date of Subscription Date of Issuance Issue price
2023-24 Series I June 19 – June 23, 2023 June 27, 2023 Rs 5,926 per gram
2023-24 Series II Sep 11-Sep15, 2023 September 20, 2023 Rs 5,923 per gram
2023-24 Series III Dec18 – Dec 22, 2023 December 28, 2023 Rs 6,199 per gram
2023-24 Series IV Feb 12 – Feb 16, 2024 February 21, 2024 Rs 6,213 per gram
The price of SGB is determined in Indian rupees based on the average closing price of 999 purity gold, as published by the India Bullion and Jewellers Association Limited (IBJA), for the three working days prior to the subscription period.
The SGB scheme was launched by the Government in November 2015, under Gold Monetisation Scheme. The gold bonds are restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.
1. The SGBs will be sold through Scheduled Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges — National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
2. It is to be noted that Small Finance Banks, Payment Banks and Regional Rural Banks won’t be selling these bonds.
3. The SGBs are sold and denominated in multiples of gram(s) of gold with a basic unit of One gram.
4. There is an investment limit. The minimum permissible investment limit is one gram of gold. The maximum limit of subscription is 4 Kg for individuals, 4 Kg for HUF, and 20 Kg for trusts and similar entities per fiscal year (April-March).
5. The investors will be offered a fixed interest rate of 2.50 per cent per annum payable semi-annually on the nominal value.
6. The gold bonds can be used as collateral for loans. The loan-to-value (LTV) ratio will be as applicable to any ordinary gold loan, mandated by RBI from time to time.
7. The interest on SGBs shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of the SGB.
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