FAQ's on Sovereign Gold Bond

What is Sovereign Gold Bond (SGB)?

SGBs are government securities denominated in grams of gold. It is a substitute to buying

physical gold. Issue price can be paid in cash and the bonds will be redeemed in cash on
maturity, based on the ongoing gold prices.

Who issues the gold bond?

The Gold Bond is issued by the Reserve Bank of India on behalf of the Government of India.

Why buy SGB?

The quantity of gold purchased by SGB investors is protected, since you receive the ongoing
market price at the time of redemption/ premature redemption.

What are the benefits?

 The SGB offers a superior alternative to holding gold in physical form. The risks and
costs of storage are eliminated.
 SGB is free from issues like making charges and purity of gold as jewellery.
 The bonds are held in the books of the RBI or in demat form eliminating risk of loss of
scrip etc.

Which are terminals through which I can purchase/Sell gold bonds?

The investment forms are available on Selfie Web, Selfie Platinum and Selfie Mob. Forms
are also available at all our branches. For more information, you can contact our call center or
visit our branches for immediate assistance.

Can I do Intraday/BTST trading for this product?

Currently this facility is not available for this product

How to purchase/Sell the bonds through NSE/BSE?

In NSE the symbol is GBNOV23 and in BSE the symbol is SGB20151. You may search the
respective symbols and then add to market watch. From the real time quotes available you
can place the orders. For selling the units which are available in your DP, the same will be
available in your portfolio. You may place the sell order from here.

Do I need to sign any agreement for availing this product?

No, you do not have to sign any specific agreements. Clients those who have eligibility to
trade in NSE/BSE can avail of this facility.

What are the procedures involved during redemption?

You will be advised one month before maturity regarding the ensuing maturity of the bond. On
maturity, the funds shall be credited automatically to the bank account furnished by the
investor at the time of buying the bond.
On redemption where will the funds get credited?

On redemption, the funds will be credited to the bank account furnished by the investor at the
time of buying the bond. But if it is sold in the secondary market then it will be credited to the
trading a/c.

Can I encash the bond anytime I want?

The bond will be tradable on Exchanges, if held in demat form. You may place the sell order
in your trading platform or call our branches/call centre to place these orders for you.

Whether the bonds are transferrable?

Yes. It can be transferred to any other eligible investor.

Is premature redemption allowed?

Though the tenure of the bond is 8 years, early encashment/redemption of the bond is
allowed after the fifth year from the date of issue on any coupon payout date.

What are the tax implications on i) interest and ii) capital gain?

i) Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43
of 1961).
ii) Capital gains tax treatment will be the same as that for physical gold.

How much would be the interest rate and when it will be given?

You will be compensated at a fixed rate of 2.75 per annum on the initial value of investment.
The interest is paid every 6 months.

Can I convert my physical holdings into demat mode, if so what are the procedures involved?

Yes, you can convert your physical holdings into demat mode. All you need to do is to fill up
the Dematerialisation Request form (DRF) and submit the physical certificate along with the
form.

What are the brokerage charges applicable to this product?

The brokerage rates are the same as that of equity.

Who is eligible to invest in SGB?

Any person who is a resident in India, as per the tenets of the Exchange Management
Act,1999 is eligible to invest in SGB. Eligible investors include Individuals, HUFS, Trusts,
Universities, Charitable Institutions. Joint holding of bonds is also allowed.