Draft:Sovereign Gold Bond


Sovereign Gold Bond, abbreviated as SGB, is a government security issued by the Reserve Bank of India (RBI) on behalf of the Government of India. They are denominated in grams of gold and are linked to the price of gold in India. They are also interest-bearing bonds that carry an interest of 2.5% p.a. paid twice per year. [1][2]

The tenor of the bond is 8 years. However, there is an option to prematurely withdraw with the RBI 5 years after issue. The bonds are listed and traded on both the Indian stock exchanges, the NSE and the BSE. It can also be transferred or sold to any eligible investor, without redeeming it with the RBI. [1]

  1. ^ a b Cite error: The named reference :0 was invoked but never defined (see the help page).
  2. ^ "What is Sovereign Gold Bonds Interest Rate & How Its Paid?". ICICI Direct. 22 December 2022. Archived from the original on 8 February 2023. Retrieved 25 April 2024.