Introduction on Sovereign Gold Bond:

• It is also abbreviated as SGB.

• These are essentially the securities issued by the government in terms of gold.

• It is one of the most rewarding investments of gold.

• These are not holding actual or physical gold but are the substitutes of it.

• These are issued only twice a year, but the timing is generally not known in very advance by the government.

• These basically means purchasing the digital gold.

• It is one of the safest options for the people as it is digitally dealt with.

• The Reserve Bank of India (RBI) issues these on part of the Indian government.

• To issue the gold, the interested people can check the details online and fill the forms.

• The basic tenor of this investment is 8 years, but redemption is possible pre-maturely in 5 years.

• The bond price of the gold is valued as per the market price of gold.

• The bond may be sold to another individual on the stock markets.

• The RBI will send out a notification when trades begin. If you want to exchange the connection, you will need to keep it in demat.

• Investors are guaranteed the fair value of gold at maturity as well as occasional dividends.

• The basic identification required for investing in SCB is to own a PAN (Permanent Account Number) card which is issued by the Income tax (IT) department of India.

• These can also be gifted to other people who fit in with the eligibility criteria.

Essential information on SCB such as eligibility, allotment, etc.:

• In this gold bonds, even minor is allowed to invest but the responsibility of the same will be given to the guardian.

• They are not meant to be used in place of physical gold. The issue price must be paid in cash, and the securities must be repaid in cash at redemption.

• Joint holding is allowed in SCB.

• In the case of a joint ownership for that specific procedure, the maximum cap would apply to the first claimant.

• SGB is open to anyone who is a resident of India as specified by the Foreign Exchange Management Act of 1999.

• Individual people, HUFs- Hindu Undivided Families, colleges, foundations, and nonprofit organizations are all qualified investors.

• If each family member meets the eligibility requirements, they may purchase the securities under their own title.

• Since the limit is set on a fiscal year (April-March) basis, a shareholder or foundation can buy 4 kg/20 kg of gold per year.

Application of Sovereign Gold bonds and its certification:

• There are various branches and apply for sovereign Gold bonds including online services.

• The places where individuals can apply are- Public Sector banks, Private Banks, International Banks, Stock Holding Company of India Ltd. (SHCIL).

• Licensed stock exchanges are also allowed via agents.

• Clients will receive a Certificate of Holding on the day the SGB is released.

• If an account number is given in the registration form, the certification of ownership can be picked up from the authorizing agencies, banks and agents or directly accessed from RBI through email.