Sovereign Gold Bond Scheme 2022-23 (Series III) – Issue price, date, benefits and where to invest

Sovereign Gold Bond Scheme 2022-23 (Series III): If you want to invest in Sovereign Gold Bond (SGB) in 2022, this could be your last chance before the year ends in the next 15 days. The Government is going to launch the next tranche of SGB this month, which will be open for subscription between 19th December to 23rd December 2023. The date of issuance would be December 27, 2022.

A press communique on 15th December said that the Government of India, in consultation with the Reserve Bank of India (RBI), has decided to issue SGBs in tranches. As such, SGB 2022-23 Series III tranche will open for subscription on December 19 and will remain available till December 23.

Sovereign Gold Bond Scheme 2022-23 (Series III) – Issue Price

The issue price of the Bond during the subscription period will be Rs 5,409. The Government of India in consultation with the Reserve Bank of India 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. For such investors, the issue price of Gold Bond will be Rs 5,359 per gram of gold.

Where can you buy SGB?

You will be able to buy the next tranche of SGBs through Scheduled Commercial banks like SBI and HDFC Bank. You cannot buy SGBs through Small Finance Banks, Payment Banks and Regional Rural Banks).

SGBs can also be purchased from Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz., NSE and BSE.

Next chance to buy SGBs

If you miss the December 19-December 23 window for investing in SGBs, the next tranche (SGB 2022-23 Series IV) would be available for subscription between March 6 and March 10 with an issuance date of March 14, 2023.

Also Read: 5 reasons why SGB is a better way to invest in gold

Why should you buy SGB?

Investing in SGBs is considered to be a better option than investing in physical gold or digital gold. The scheme is backed by the Government of India and regulated by the RBI. Therefore, there is an added assurance of the safety of investments. Also, there are several benefits that you can’t enjoy by buying physical or other versions of Gold.

SGB investors are compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value. Moreover, the capital gains tax arising on the redemption of SGB to an individual is exempted.

The indexation benefits are also provided to long-term capital gains arising to any person on transfer of bond. SGBs can be used as collateral got loans.