About Sovereign Gold Bonds:
- These bonds are government securities denominated in grams of gold.
- They are substitutes for holding physical gold. Investors have to pay the issue price, and the bonds will be redeemed upon maturity.
- Issuance: The bond is issued by Reserve Bank on behalf of the GOI.
- Eligible to invest in the SGBs:
- The bonds will be restricted for sale to resident Indian entities, including individuals, Hindu Undivided Family (HUF), Trusts, Universities and Charitable Institutions.
- Investment Limits:
- The bonds are issued in denominations of one gram of gold and in multiples thereof.
- The minimum investment in the bond shall be one gram, with a specific maximum subscription limit.
- Term: The term of the bond will be for a period of 8 years, with an exit option in the 5th, 6th, and 7th years, to be exercised on the interest payment dates.
- Bonds are sold through offices or branches of Nationalised Banks, Scheduled Private Banks, Scheduled Foreign Banks, designated Post Offices, Stock Holding Corporation of India Ltd. (SHCIL), and the authorised stock exchanges either directly or through their agents.
