SGB
What is an SGB?
Sovereign Gold Bonds (SGBs) are government-backed securities that allow investors to buy gold in a digital form. Instead of physically owning gold, you can invest in these bonds, which are issued by the Reserve Bank of India (RBI) on behalf of the government. SGBs offer an attractive investment opportunity as they provide returns linked to the price of gold, along with an annual interest payout.
Subscribing to a New SGB Issue
During an active RBI issue period, email support@firstock.in with the investment amount to subscribe.
Tracking Holdings & Interest
SGBs are held in your Demat account and appear under Holdings. Interest at 2.5% p.a. is credited semi-annually to your bank account.
Issue Price vs Market Price
- Issue Price: Set by RBI during fresh issues.
- Market Price: Fluctuates on exchanges based on demand, liquidity, and gold prices. Early trading may involve a premium or discount.
Redemption or Early Exit
- Maturity: 8 years.
- Early Redemption: Allowed from the 5th year onward on interest payment dates.
- Demat Holding: Can be sold on the exchange or transferred to another eligible investor.