SGB is a government security denominated in gold grams. (Representative image)
Since the launch of the SGB scheme in November 2015, a total of ₹72,274 billion (146.96 tonnes) has been raised through 67 tranches.
Sovereign gold bonds have captured the hearts of investors, who purchased bonds worth Rs 27,031 crore in the last fiscal. This is more than four times the amount invested in 2022-23 with the prospect of higher returns and tax benefits.
Bonds purchased by investors accounted for a whopping 44.34 tonnes of gold during 2023-24. In 2022-23, Sovereign Gold Bonds (SGBs) equivalent to 12.26 tonnes of gold were purchased for Rs 655.1 billion.
“The total amount raised during 2023-24 stood at 44.34 tonnes (Rs 27,031 crore, 44.34 tonnes),” said the annual report of the central bank, which issues bonds on behalf of the central government.
During the fiscal period ended March 2024, the bonds were issued in four tranches.
Since the launch of the SGB scheme in November 2015, a total of ₹72,274 billion (146.96 tonnes) has been raised through 67 tranches.
The price of 24 carats per 10 grams of gold rose from around Rs 62,300 to Rs 73,200 in a year.
SGB is a government security denominated in gold grams. It replaces physical gold holdings. These bonds are exempt from capital gains tax.
Additionally, the bond bears interest of 2.50% per annum (fixed interest rate) on the initial investment amount.
SGB is issued in units of 1 gram gold and multiples thereof. The minimum investment amount should be 1 gram, limited to 4 kg for individuals, 4 kg for Hindu Undivided Families (HUFs) and 20 kg for trusts and similar entities as notified by the government from time to time in each financial year (April to March).
SGBs are sold directly or through agents through the offices or branches of nationalized banks, scheduled private banks, scheduled foreign banks, scheduled post offices, Stock Holding Corporation of India Ltd. (SHCIL) and recognized stock exchanges.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)