What are the open and close dates?keyboard_arrow_down
The seventh series of SGB for FY21-22 is open between October 25 and 29.
What is the minimum and maximum order quantity?keyboard_arrow_down
The maximum you can buy in a financial year is 4 kg
What is the issue price?keyboard_arrow_down
The issue price is Rs 4,711 per gram.
Is there a discount for online application?keyboard_arrow_down
RBI gives a discount of Rs 50 per gram for investors who apply for SGB through an online platform. Hence, the price at which you buy your SGB on Groww will be the discounted price.
When will this SGB series be issued?keyboard_arrow_down
The seventh tranche will be issued on November 2, 2021
What is the rate of interest provided by gold bonds and how is it credited?keyboard_arrow_down
The fixed-rate is 2.5% which is credited semi-annually to the bank account registered with Groww.
When is the holding certificate issued?keyboard_arrow_down
The holding certificate will be issued on the date of issuance of the SGB. The certificate of holding is sent directly to your registered email ID.
How much will I get on maturity?keyboard_arrow_down
The maturity amount will be equal to the prevailing market value of gold.
How will I receive the SGB redemption amount?keyboard_arrow_down
The interest and redemption amount will be credited to your bank account registered with Groww.
Is premature redemption of SGBs allowed?keyboard_arrow_down
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?keyboard_arrow_down
You can sell SGBs on the exchanges but the volumes of SGBs on the exchanges are generally low.
Can SGBs serve as collateral in loans?keyboard_arrow_down
Yes, they can be used as collateral for loans from banks and NBFCs.
What are the tax implications?keyboard_arrow_down
The interest is taxable. Capital gains are not taxable on maturity but are taxable on premature redemption.
What are the risks of investing in SGBs?keyboard_arrow_down
There is a risk of capital decline only if the gold prices decline. There is no loss in terms of units of the quantity of gold bought.