Read This to Know All About Withdrawing Sovereign Gold Bonds Before Maturity
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Sovereign Gold Bonds (SGBs) are substitutes to physical gold and are government securities denominated in the yellow metal. Investors of SGBs are given a holding certificate. The tenor of the SGB is eight years, however, if the investors want to withdraw the bond before this period, then the facility is available after the fifth year from the date of issue on coupon payment dates. If the bond is held in the demat form, it is tradable on exchanges or the sovereign gold bond can be transferred to any other eligible investor.
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The value of the bond is based on the simple average closing price published by India Bullion and Jewellers Association Ltd (IBJA) for gold of 999 purity of the last three business days of the week preceding the subscription period (January 27-29, 2020).