Sovereign Gold Bond Scheme (SGB)

SGBs are government securities denominated in grams of gold.It is a substitute to buying physical gold. Issue price can be paid in cash andthe bonds will be redeemed in cash on maturity, based on the ongoing goldprices.

 The Gold Bond isissued by the Reserve Bank of India on behalf of the Government of India.

Why buy SGB? The quantity of gold purchased by SGB investorsis protected, since you receive the ongoing market price at the time ofredemption/ premature redemption.

· TheSGB offers a superior alternative to holding gold in physical form. The risksand costs of storage are eliminated. ·SGB is free from issues like making charges and purity of gold as jewellery. · The bonds are held in thebooks of the RBI or in demat form eliminating risk of loss of scrip etc.

 The investment formsare available on Selfie Web, Selfie Platinum and Selfie Mob. Forms are alsoavailable at all our branches. For more information, you can contact our callcenter or visit our branches for immediate assistance.

In NSE the symbol is GBNOV23 and in BSE the symbol isSGB20151. You may search the respective symbols and then add to market watch.From the real time quotes available you can place the orders. For selling theunits which are available in your DP, the same will be available in yourportfolio. You may place the sell order from here.

You will be advised one month before maturity regarding theensuing maturity of the bond. On maturity, the funds shall be creditedautomatically to the bank account furnished by the investor at the time ofbuying the bond.

On redemption, the funds will be credited to the bankaccount furnished by the investor at the time of buying the bond. But if it issold in the secondary market then it will be credited to the trading a/c.

The bond will be tradable on Exchanges, if held in dematform. You may place the sell order in your trading platform or call ourbranches/call centre to place these orders for you.

Yes. It can be transferred to any other eligible investor.

Though the tenure of the bond is 8 years, earlyencashment/redemption of the bond is allowed after the fifth year from the dateof issue on any coupon payout date.

i)                   Interest on the Bonds will be taxable as per theprovisions of the Income-tax Act, 1961 (43 of 1961).

ii)                  Capital gains tax treatment will be the same asthat for physical gold.

How much would be the interest rate and when it will begiven?

You will be compensated at a fixed rate of 2.75 per annum onthe initial value of investment. The interest is paid every 6 months.

Yes, you can convert your physical holdings into demat mode.All you need to do is to fill up the Dematerialisation Request form (DRF) andsubmit the physical certificate along with the form.

The brokerage rates are the same as that of equity.

Any person who is a resident in India, as per the tenets ofthe Exchange Management Act,1999 is eligible to invest in SGB. Eligibleinvestors include Individuals, HUFS, Trusts, Universities, CharitableInstitutions. Joint holding of bonds is also allowed