The Reserve Bank of India (RBI) has unveiled the details for the upcoming tranche of the Sovereign Gold Bond (SGB) Scheme 2023-24 – Series IV, providing investors with an opportunity to invest in gold with added benefits.
Starting from February 12 investors can subscribe to the SGB Series IV until February 16, 2024, at an issue price of Rs 6,263 per gram. However, those making online payments will enjoy a special discount of Rs 50 per gram, reducing the effective issue price to Rs 6,213.
Investors will have various avenues to sell their Sovereign Gold Bonds, including scheduled commercial banks, post offices, and stock exchanges. The issuance of the bonds is set for February 21, 2024.
Sovereign Gold Bonds are recognized as a medium to long-term investment with a tenor of eight years. Investors have the flexibility to opt for premature redemption after the fifth year. At a fixed interest rate of 2.50% per annum, the SGBs have gained popularity as a reliable alternative to physical gold.
Notably, profits made on Sovereign Gold Bond redemption are fully tax-free, enhancing the appeal of these bonds in the investment landscape.
The unique feature of these bonds is the protection of the quantity of gold paid by the investor. Upon redemption or premature redemption, investors receive the ongoing market price, ensuring a safeguard against market fluctuations. SGBs eliminate the risks and costs associated with physical gold storage, providing assurance of the market value at maturity, along with periodical interest.
SGBs are issued in denominations of one gram of gold, allowing a minimum investment of one gram. For individual investors and Hindu Undivided Family (HUF), the maximum subscription limit is set at 4 kg, while trusts are permitted a maximum subscription of 20 kg.
This announcement follows the previous tranche, Series III of the SGB Scheme 2023-2024, launched by the central bank from December 18-22, 2023. The issue price during this period was Rs 6,199 per gram of gold, with a Rs 50 discount offered for online payments. Investors can stay informed and make strategic investment decisions based on these details provided by the RBI for the upcoming Series IV of the Sovereign Gold Bond Scheme.
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