Sovereign Gold Bond Scheme 2023-24 Issue Dates (June and September) 2023: You will be able to subscribe to the Sovereign Gold Bond (SGB) between June 19 and June 23 this month. After this, the next window for subscribing to SGB will open between September 11 and September 15, 2023, according to an RBI press release.

“The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited,” the release said.

SGB Issue Dates

  • 2023-24 Series I: The date of subscription is June 19-June 23, 2023. The issuance date is June 27, 2023.
  • 2023-24 Series II: The date of subscription is September 11 to September 15, 2023. The issuance date is September 20, 2023.

How much can you buy?

The minimum permissible investment is one gram of gold. The maximum limit of subscription is 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time.

According to RBI, the investors have to give a self-declaration at the time of making an application for a subscription. “The annual ceiling will include SGBs subscribed under different tranches, and those purchased from the secondary market, during the fiscal year,” RBI said.

SGBs can also be purchased jointly. But in the case of joint holding, the investment limit of 4 kg will be applied to the first applicant only.

Should you invest in SGBs?

Abhijit Roy, CEO, GoldenPi

“The opening of the Sovereign Gold Bond scheme for subscription by retail investors presents a unique opportunity to invest in gold as an asset class. With the option to purchase as little as one gram of gold and a maximum of four kilos, investors can participate in this regulated and secured investment avenue,” says Abhijit Roy, CEO, GoldenPi.

The attractive proposition of SGBs extends further, as retail investors stand to gain a 2.5% annual interest on their investment until the maturity of the bonds. Additionally, there is a discount of Rs 50 on every gram of gold that an applicant applies thru online mode and pays digitally (Netbanking, NEFT, UPI etc.).

“The liquidity of these bonds is facilitated by their listing on exchanges, allowing investors to redeem them from the fifth year onwards. One of the most significant advantages of this asset class is the complete exemption from taxation on capital gains realized upon maturity after eight years,” says Roy.

Is it safe?

According to Roy, the dematerialized form of the bonds allows for convenient holding in a demat account, eliminating concerns regarding impurities and deductions often associated with physical gold. The securitization of these bonds against 99.9% pure gold held by the Reserve Bank of India (RBI) ensures that investors will receive the full value of the gold upon redemption in the eighth year, without any deductions.

“This scheme offers retail investors a secure, interest-bearing investment in gold, allowing them to diversify their portfolios and benefit from the long-term potential of this precious metal. With its ease of access, purity assurance, interest earnings, and tax benefits, the Sovereign Gold Bond scheme presents an enticing opportunity for investors looking to harness the potential of gold as a long-term investment,” says Roy.