InvestorQ : How to invest in sovereign gold bonds(SGB)?
Ishita Jain made post

How to invest in sovereign gold bonds(SGB)?

vani Patil answered.
1 year ago
In a single financial year, the Reserve Bank India (RBI) makes sovereign gold bonds (SGBs) available for purchase in different tranches. The issue is generally open for a period of 5 days. RBI has allowed the following entities to issue gold bonds-
  • Commercial banks
  • Stock exchanges
  • Post office
  • Stock Holding Corporation of India Ltd (SHCIL)
If you want to invest through banks, the procedure is as follows-
  • Log in to your net banking account.
  • Click on the SGB option which will generally be available on the bank’s home page or under the list of services they provide. This varies across banks.
  • Fill in the SGB registration form with relevant details.
  • Select your bond delivery option. You have the option of selecting Demat of physical delivery.
  • Next, you will find details such as the issue price. Enter the number of units that you want to invest in.
  • Lastly, verify your details and click on ‘Confirm and submit.
  • You will get a reference number linked to this purchase.
If you want to invest through brokers like IIFL, you just need to open your Demat account and fill and submit a form as above. The only difference is, this procedure will not give you an option for taking physical delivery. The units will directly be transferred to your Demat account.