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. It is denominated in grams of gold and is linked to the price of gold in India. It is also an interest-bearing bonds, carrying an interest of 2.5% p.a. paid in two installments in a year.[1][2]

The bond has an 8-year term with an option for early withdrawal through the RBI after 5 years. It is listed and traded on Indian stock exchanges, allowing eligible investors to buy or sell anytime through their dematerialization accounts. It can also be transferred to another eligible investor without redemption through the RBI.[3]

  1. ^ Rukhaiyar, Ashish (17 May 2020). "Sovereign Gold Bonds, a substitute for physical gold". The Hindu. ISSN 0971-751X. Archived from the original on 27 July 2024. Retrieved 26 July 2024.
  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.
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