Sovereign Gold Bonds through CSC
INTRODUCTION
The Government of India, in consultation with the Reserve Bank of India has introduced the Sovereign Gold
Bond (SGB) Scheme to offer investors an alternative to physical gold.
Maturity period is 8 years. However, one can choose an option of premature redemption after 5 th year only on
interest pay-out dates.
SGBs are government securities and are considered safe. Their value is denominated in multiples of grams of
gold.
1.Minimum investment: 1 gram.
2.Maximum investment: 4 Kgs for individual/HUF and 20 Kgs for Trust and similar entities
Price of the SGBs shall be fixed at INR (Indian Rupees) on the basis of simple average of the closing price of
gold of 999 purity (24 carat) published by the India Bullion & Jewelers Association Limited (IBJA) for the last 3
working days of the week preceding the subscription period.
FEATURES OF SGB
EARN INTEREST
2.50% assured interest per annum on issue price.
COLLATERAL
Some banks accept SGB as collateral/security against loans pledged in Demat form.
ABSOLUTE SAFETY
Zero risk of handling physical gold and can be stored in DEMAT form.
TAX BENEFITS
The Capital gain tax is exempt if hold for 8 years.
No TDS Deducted on purchase/redemption of SGB.
TRADABILITY
Tradable on Stock Exchange.
SOVEREIGN GOLD BOND V/S PHYSICAL GOLD
PARTICULARS SOVEREIGN GOLD BOND PHYSICAL GOLD
Returns Higher than actual return on gold Lower than actual return on gold
Safety High Risk of handling physical gold
Purity of Gold High as it is in Electronic Form Purity of Gold always remains a
question
Collateral against Loan Yes Yes
Tradability / Exit Route Tradable on Exchange. Redemption Conditional
5th year onwards
Storage Cost Very Low High
ONLINE SGB APPLICATION PROCESS
Login into Digital Seva Portal https://digitalseva.csc.gov.in.
Search for Sovereign Gold Bonds.
Click on Login button
Provide the Customer Details and proceed.
You will be redirected to Stockholding Corporation website for onward journey.
Enter customer Name, Email Id , Mobile Number and select category.
- FILL IN CUSTOMER PAN NUMBER, DATE OF BIRTH, Depository Name and DP ID
- Above details can be taken from Demat Account Statement.
UPLOAD E-AADHAR (PDF) OR AADHAR.ZIP AND AGREE
WITH THE TERMS AND CONDITIONS.
UPLOAD E-AADHAR (PDF) OR AADHAR.ZIP AND AGREE
WITH THE TERMS AND CONDITIONS.
PROVIDE THE MOBILE NUMBER REGISTERED WITH AADHAR
EKYC SUCCESS MESSAGE
- PROVIDE EMAIL ID AND MOBILE No. AND SELECT WHERE OTP TO BE SENT.
- CLICK ON GET OTP, AN OTP WILL BE SENT ON THE EMAIL OR MOBILE NUMBER AS SELECTED.
- ENTER IT INTO THE OTP FIELD, INPUT SYMBOLS AND CLICK ON AUTHENTICATE.
PLEASE FILL ALL THE REQUIRED INVESTMENT RELATED
INFORMATION. DON’T FORGET TO AGREE WITH THE
DISCLAIMER
CLICK ON SAVE AND CONTINUE TO GO TO THE NEXT STEP.
PERSONAL DETAILS ADDED SUCCESSFULLY MESSAGE. CLICK OK TO
PROCEED
PROVIDE CUSTOMER BANK DETAILS AND UPLOAD THE FIRST
HOLDERS SIGNATURE
PROVIDE NOMINEE DETAILS
CONFIRM THE PAYMENT MODE AS PAYMENT GATEWAY AND MAKE THE
PAYMENT.
CONFIRM IF CUSTOMER MOBILE NUMBER IS REGISTERED WITH
AADHAR
Click on Ok
- PROCEED FOR AFFIXING ESIGN
- IF ESIGN NOT DONE, AMOUNT WILL BE REFUNDED BACK TO CUSTOMER
- WHEN YOU PROCEED WITH ESIGN, YOU WILL BE REDIRECTED TO THE NSDL WEBSITE
WHERE YOU HAVE TO PROVIDE CUSTOMER AADHAR NUMBER OR VIRTUAL ID.
- CLICK ON ‘SEND OTP’ AND SUBMIT IT ONCE RECEIVED.
ONCE PAYMENT IS RECEIVED AND DOCUMENTS VERIFIED, CUSTOMER SGB ONLINE SUBSCRIPTION PROCESS IS COMPLETE.
Thank You
