Sovereign Gold Bond 2023-24 series 3 scheme opens: Issue price, interest rate, tax implications, other key details to know

SGB 2023–24: A third series of the Sovereign Gold Bond (2023–24) scheme opened on Monday, December 18. The subscription window for the gold bond scheme, wherein the RBI issues bonds linked with the market value of gold on behalf of the Government of India, will be available for five trading days, till Friday, December 22.  

SGB 2023–24 issue price, Sovereign Gold Bonds issue price

The issue price of the current tranche of the gold bonds scheme has been set at Rs 6,199 per unit.  

SGB 2023–24 settlement date 

The current installment of the SGB scheme has a settlement date ofDecember 28, 2023. 

Sovereign Gold Bonds: Discount  

The Government of India, in consultation with the RBI, has decided to allow discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode. Hence, for such investors, the issue price of the gold bonds will be Rs 6,149 per unit, which is equivalent to one gram of gold. 

SGB denomination  

The bonds are denominated in multiples of grams of gold, with a basic unit of one gram, which means each unit carries the market value equivalent to one gram of the precious metal in 99.9 per cent purity.  

SGB interest income 

SGBs offer an additional benefit in the form of fixed interest, which is paid semi-annually. The rate is fixed at the time of issuance. 

SGB tradability 

SGBs are listed on stock exchanges, providing liquidity to investors who want to sell before maturity. 

SGB lock-in period 

The SGBs are issued with a maturity period of eight years, with an option to exit from the completion of five years on interest payment dates. 

SGB redemption 

SGBs can be redeemed at the prevailing market price on the stock exchanges if the investor chooses to exit before maturity. 

About Sovereign Gold Bond scheme 

Launched by the government in November 2015 under the Gold Monetisation Scheme, the Sovereign Gold Bond Scheme involves the issuance of bonds linked to the yellow metal in consultation with the Government of India. The RBI notifies the terms and conditions of the scheme from time to time. The rate of SGBs is declared by the RBI before every new tranche via a press release. 

ALSO READ: How Sovereign Gold Bond issue price is calculated 

Sovereign Gold Bond Scheme 2023-24 Series IV date

The Series IV of sovereign gold bonds is scheduled to hit the market from February 12 to 16, 2024. 

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