Sovereign Gold Bond (SGB) — Complete Guide
Government-backed gold you never have to store, earning 2.5% a year on the issue price (Friday, 9 October 2026).
Status update: the government has stopped issuing new Sovereign Gold Bonds. The last fresh tranche was issued in February 2024, and after the Union Budget on 1 February 2025 the Finance Ministry confirmed that no new SGBs would be issued. Existing bonds stay valid until maturity, keep paying interest, and can be bought or sold on the NSE/BSE through a demat account.
What is a Sovereign Gold Bond?
A Sovereign Gold Bond is a security issued by the Reserve Bank of India on behalf of the Government of India, denominated in grams of gold. One bond = 1 gram of gold. You pay today's gold price, and instead of holding metal, you hold a bond that tracks the gold rate — with zero storage cost, zero making charges and no purity worries.
Why investors prefer SGB over physical gold
| Feature | Sovereign Gold Bond | Physical Gold |
|---|---|---|
| Extra return | 2.5% p.a. interest | None |
| Making charges | Nil | 8–25% |
| Storage / safety | Held in RBI records / demat | Locker cost & risk |
| Purity | 999 (24K) guaranteed | Depends on jeweller |
| Tax on maturity gains | Exempt (held to 8 yrs) | Capital gains taxable |
| GST on purchase | None | 3% |
Key terms
- Tenure: 8 years, with an exit option after the 5th year on interest-payment dates.
- Interest: 2.5% per year on the issue amount, paid half-yearly to your bank account.
- Minimum / maximum (at issue): 1 gram minimum; up to 4 kg per individual per financial year while tranches were open.
- Pricing (at issue): the issue price was the simple average of the closing 999-purity gold price (IBJA) for the last three business days before the subscription week. Redemption is also priced from the IBJA 999 rate.
How to buy SGB now (secondary market)
With no fresh tranches, the only way to buy an SGB today is to buy an already-issued series on the stock exchange. Listed series trade under symbols starting with "SGB" on the NSE and BSE, and you buy them in a demat account through any broker, just like a share.
- Price: you pay the exchange price, which can sit above or below the value of the gold. Compare it with the 999 rate before placing an order (today 24K is about ₹14,546 per gram on this site, an indicative figure).
- Liquidity: trading volumes in many series are thin, so use a limit order and check the gap between buy and sell prices.
- Interest: you receive the series' 2.5% interest, calculated on its original issue price, for the remaining payment dates.
- Remaining tenure: each series matures 8 years after its issue date, so check the maturity date before you buy.
Earlier tranches were sold through banks, post offices, brokers and the exchanges, with a ₹50/gram discount for online applicants. Those subscription routes are closed because no new tranche is open.
If SGB is not for you
If you want gold exposure without new SGBs, the usual options are gold ETFs and gold mutual funds, digital gold, or 24K coins and bars. They differ in cost, tax and regulation. Our gold ETF guide compares them. This is general information, not investment advice.
SGB — FAQ
Can I still buy a new Sovereign Gold Bond?
No. No new tranche has been issued since February 2024, and the government confirmed in February 2025 that fresh issues have stopped. You can buy existing series on the NSE or BSE through a demat account.
What is today's gold rate for SGB reference?
SGBs track 999 gold. Today 24K gold is about ₹14,546 per gram on this site (Friday, 9 October 2026, indicative). On the exchange an SGB can trade at a premium or a discount to that value.
Is SGB interest taxable?
The 2.5% interest is taxable as per your income slab, but the capital gain on redemption at maturity is exempt from tax.
Can I sell before 8 years?
Yes. Premature redemption is allowed from the 5th year on interest-payment dates, or you can sell the units on the stock exchange at any time. The tax exemption applies to redemption at maturity; gains from selling on the exchange are taxed as capital gains.
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