
Sovereign Gold Bond
Sovereign Gold Bonds are government securities issued by the Reserve Bank of India (RBI) on behalf of the Government of India.
- Attractive Interest with asset appreciation opportunity
- Redemption is linked to Gold Price
- Exempt from Capital gains tax, if held till maturity
Benefit of SGBs
Interest
The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
Safety
There is no need for storage or safety of gold under this scheme, as the gold isn’t physically given to an investor immediately.
Sovereign guarantee
SGB comes with a assured fixed rate interest per annum on the initial investment, making it a lucrative investment opportunity.
Withdrawal
Investor can exit the bond at the end of 5th , 6th or 7th year.
Eligibility
Any resident Indian entity including HUFs, individuals, Trusts, Universities and Charitable institutions can invest in the sovereign gold bond.
Denomination
Bonds are denominated in whole number multiples of one gram of gold.
Minimum value
The minimum permissible investment in sovereign gold bonds is equivalent to one gram of gold.
Cap on value
Individuals and HUFs can invest in a maximum of 4kg worth of gold bonds. Trusts and other similar entities can invest in up to 20kg worth of gold bonds. The limit is periodically revised by the Government of India.
How much interest rate
Sovereign gold bond scheme is a fixed interest rate. The gold bond interest rate is 2.50% every year over. Remember, this is over and above the gold price return. The interest is paid every six months on the nominal value.
Tenure of Investment
Sovereign gold bonds have a tenure of eight years. Investors can exercise an exit option from the fifth year onwards. The exit option can only be exercised on the day the interest is payable.
Redemption
Redemption price of the sovereign gold bond is equal to the simple average of the closing price of gold of 999 purity of previous 3 business days. The price published by the Indian Bullion and Jewelers Association Limits is used for this calculation.

SGBs Upcoming Issue
Tranche | Date of Subscription |
2020-21 Series X | 11 Jan to 15 Jan 2021 |
2020-21 Series XI | 1 Feb to 5 Feb 2021 |
2020-21 Series XII | 1 Mar to 5 Mar 2021 |
What are gold Bonds
A sovereign gold bond is denominated in grams of gold. You can get in multiples of 1 gram.
Minimum investment is 1 gram.
Sovereign Gold Bond Series History
SGBs
Sovereign Gold Bond 2020-21 Details
Name | Date | Price | Maturity Dt | Interest | NSE Code |
2020-21 Series IX | 05 Jan 2021 | 4,950 | Jan 2029 | 2.5% | SGBJ29IX |
2020-21 Series VIII | 18 Nov 2020 | 5,127 | Nov 2028 | 2.5% | SGBN28VIII |
2020-21 Series VII | 20 Oct 2020 | 5,001 | Oct 2028 | 2.5% | SGBOC28VII |
2020-21 Series VI | 08 Sep 2020 | 5,067 | Sep 2028 | 2.5% | SGBSEP28VI |
2020-21 Series V | 11 Aug 2020 | 5,284 | Aug 2028 | 2.5% | SGBAUG28V |
2020-21 Series IV | 14 Jul 2020 | 4,802 | Jul 2028 | 2.5% | SGBJUL28IV |
2020-21 Series III | 16 Jun 2020 | 4,627 | Jun 2028 | 2.5% | SGBJUN28 |
2020-21 Series II | 22 May 2020 | 4,540 | May 2028 | 2.5% | SGBMAY28 |
2020-21 Series I | 28 Apr 2020 | 4,589 | Apr 2028 | 2.5% | SGBAPR28I |
Sovereign Gold Bond 2019-20 Details
Name | Date | Price | Maturity Dt | Interest | NSE Code |
2019-20 Series X | 11 Mar 2020 | 4,210 | Mar 2028 | 2.5% | SGBMAR28X |
2019-20 Series IX | 11 Feb 2020 | 4,020 | Feb 2028 | 2.5% | SGBFEB28IX |
2019-20 Series VIII | 21 Jan 2020 | 3,966 | Jan 2028 | 2.5% | SGBJ28VIII |
2019-20 Series VII | 10 Dec 2019 | 3,745 | Dec 2027 | 2.5% | SGBDC27VII |
2019-20 Series VI | 30 Oct 2019 | 3,785 | Oct 2027 | 2.5% | SGBOCT27VI |
2019-20 Series V | 15 Oct 2019 | 3,738 | Oct 2027 | 2.5% | SGBOCT27 |
2019-20 Series IV | 17 Sep 2019 | 3,840 | Sep 2027 | 2.5% | SGBSEP27 |
2019-20 Series III | 14 Aug 2019 | 3,449 | Aug 2027 | 2.5% | SGBAUG27 |
2019-20 Series II | 16 Jul 2019 | 3,393 | Jul 2027 | 2.5% | SGBJUL27 |
2019-20 Series I | 11 Jun 2019 | 3,146 | Jun 2027 | 2.5% | SGBJUN27 |
Sovereign Gold Bond 2018-19 Details
Name | Date | Price | Maturity Dt | Interest | NSE Code |
2018-19 Series VI | 12 Feb 2019 | 3,276 | Feb 2027 | 2.5% | SGBFEB27 |
2018-19 Series V | 22 Jan 2019 | 3,164 | Jan 2027 | 2.5% | SGBJAN27 |
2018-19 Series IV | 01 Jan 2019 | 30,69 | Jan 2027 | 2.5% | SGBDEC26 |
2018-19 Series III | 13 Nov 2018 | 3,133 | Nov 2026 | 2.5% | SGBNOV26 |
2018-19 Series II | 23 Oct 2018 | 3,096 | Oct 2026 | 2.5% | SGBOCT26 |
2018-19 Series I | 04 May 2018 | 3,064 | May 2026 | 2.5% | SGBMAY26 |
Sovereign Gold Bond 2017-18 Details
Name | Date | Price | Maturity Dt | Interest | NSE Code |
2017-18 Series XIV | 01 Jan 2017 | 2,831 | Jan 2026 | 2.5% | SGBJAN26 |
2017-18 Series XIII | 26 Dec 2017 | 2,816 | Dec 2025 | 2.5% | SGBDEC2513 |
2017-18 Series XII | 18 Dec 2020 | 2,840 | Dec 2025 | 2.5% | SGBDEC2512 |
2017-18 Series XI | 11 Dec 2017 | 2,902 | Dec 2025 | 2.5% | SGBDEC25XI |
2017-18 Series X | 04 Dec 2017 | 2,911 | Dec 2025 | 2.5% | SGBDEC25 |
2017-18 Series IX | 27 Nov 2017 | 2,914 | Nov 2025 | 2.5% | SGBNOV25IX |
2017-18 Series VIII | 20 Nov 2017 | 2,911 | Nov 2025 | 2.5% | SGBNOV258 |
2017-18 Series VII | 13 Nov 2017 | 2,884 | Nov 2025 | 2.5% | SGBNOV25 |
2017-18 Series VI | 06 Nov 2017 | 2,895 | Nov 2025 | 2.5% | SGBNOV25VI |
2017-18 Series V | 30 Oct 2017 | 2,921 | Oct 2025 | 2.5% | SGBOCT25V |
2017-18 Series IV | 23 Oct 2017 | 2,937 | Oct 2025 | 2.5% | SGBOCT25IV |
2017-18 Series III | 16 Oct 2017 | 2,906 | Oct 2025 | 2.5% | SGBOCT25 |
2017-18 Series II | 28 Jul 2017 | 2,780 | Jul 2025 | 2.5% | SGBJUL25 |
2017-18 Series I | 12 May 2017 | 2,901 | May 2025 | 2.5% | SGBMAY25 |
Sovereign Gold Bond 2016-17 Details
2016-17 Series IV | 17 Mar 2017 | 2,893 | Mar 2025 | 2.5% | SGBMAR25 |
2016-17 Series III | 17 Nov 2016 | 2,957 | Nov 2024 | 2.5% | SGBNOV24 |
2016-17 Series II | 23 Sep 2016 | 3,150 | Sep 2024 | 2.5% | SGBSEP24 |
2016-17 Series I | 05 Aug 2016 | 3,119 | Aug 2024 | 2.5% | SGBAUG24 |
Sovereign Gold Bond 2015-16 Details
2014-15 Series I | 26 Nov 2015 | 2,684 | Feb 2023 | 2.5% | SGBNOV23 |

Advantage of Sovereign Gold Bonds
Absolute Safety
Sovereign Gold Bonds carry none of the risks that are associated with physical gold, except the market risks.
Extra Income
You can earn a guaranteed annual interest at the rate of 2.50% (on the issue price)
Collateral
Some banks accept SGB as collateral/security against secured loans.
FAQs
What are benefit of buying these bonds in comparison to physical gold?
No impurity risk – These bonds are denoted by 999 purity.
No Storage risk or cost of storage – Storing physical gold could be a risky affair and involve storage/locker/insurance charges. None of these are applicable for SGBs.
No default / Counterparty Risk – Physical gold holders could be exposed to counterparty risk, whereas SGBs are backed by the government & issued by RBI on behalf of the central government.
No GST or STT – Purchase of physical gold attracts GST. SGBs do not attract GST & there is no GST charges on SGB trades.
Is Capital Gain Tax payable on gains in SGB?
In case the SGBs are encashed by way of redemption by an individual from the RBI, no capital gains tax is payable.
In case the SGBs are sold before the maturity date on the exchanges, then this exemption is not available.
In such a case, the Capital Gains will be levied (Long term or Short term based on whether it is held for 3 years or more or less than 3 Years) at the applicable rates i.e. short term (at applicable rates to the investor) and long term (20% after indexation)
What is tax treatment on sovereign gold bondS
The interest on Gold Bonds 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 has been exempted.
The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
Are there any risks in investing in Sovereign Gold Bond?
There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.
How will I get the redemption amount?
Both interest and redemption proceeds will be credited to the bank account number furnished in the application form.
Can a Minor invest in SGB?
Yes. The application on behalf of the minor can be made by his / her guardian through a branch. Minor account holders cannot apply for SGB in the online mode.
Is the maximum limit of 4 kg applicable in case of joint holding?
The maximum limit will be applicable for the first applicant in case of a joint holding for the specific application.
Can I take loan against Sovereign Gold Bond?
Yes, you can take loan against Sovereign Gold Bonds.
The loans to value ratio for loans against SGB will be same as that for gold loans.
What happens to SGB after maturity?
You redeem the bond after eight years. SGB doesn’t attract any capital gain tax on redemption after eight years. However, this benefit is available only to individual investors.
Suppose you have bought SGB at the rate of Rs 2,860 per gram and redeemed it after eight years at Rs 5,700. Your capital gain from the transaction Rs 2,840 is exempted from capital gain tax.
- The investor is informed one month before the date of redemption
- On the date of redemption, the value will get credited to your bank account
- If there is any change in the bank account or email address details, you should intimate the concerning bank/SHCIL/PO upfront.