How do I Buy and Sell Sovereign Gold Bonds?
I. Buying Sovereign Gold Bonds
1. Subscription Period: Wait for the subscription period announced by the government or the Reserve Bank of India (RBI). These periods are typically announced periodically.
2. Authorized Intermediaries: Approach authorized intermediaries such as commercial banks, designated post offices, stock exchanges, or recognized stockbrokers to subscribe to Sovereign Gold Bonds. You can also subscribe online through the websites of authorized intermediaries or the RBI’s online portal.
3. KYC Compliance: Ensure you have completed the Know Your Customer (KYC) process with the chosen intermediary. Submit the required documents and KYC form as per the intermediary’s guidelines.
4. Subscription: Fill out the subscription form provided by the intermediary, indicating the quantity of SGBs you wish to purchase. Make the payment through the specified mode (online banking, cheque, demand draft, etc.) for the subscribed SGBs at the applicable issue price.
5. Allotment: After the subscription period ends, the allotment of SGBs is made based on the subscriptions received and subject to availability. Allotment details are communicated to investors.
II. Selling Sovereign Gold Bonds
1. Secondary Market: Sovereign Gold Bonds can be sold in the secondary market through recognized stock exchanges where they are listed. Alternatively, you can sell them through authorized stockbrokers.
2. Dematerialization: Ensure your Sovereign Gold Bonds are in dematerialized (demat) form if you intend to sell them through the stock exchange. If your bonds are in physical form, you can convert them to demat form through your Depository Participant (DP).
3. Trading: Place a sell order through your stockbroker or online trading platform, specifying the quantity of SGBs you wish to sell and the price at which you want to sell them. The sale proceeds will be credited to your linked bank account upon successful execution of the sell order.
4. Compliance: Ensure compliance with any regulatory requirements and pay any applicable taxes on the capital gains arising from the sale of Sovereign Gold Bonds.
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