Sovereign Gold Bond 2023-24 Series III Subscription Now Open: Essential Insights for Investors

Investors eyeing the precious metal now have the opportunity to subscribe to the Sovereign Gold Bond Scheme 2023-24 Series III, as it commenced its subscription period on Monday. Here are five crucial points to consider before diving into this investment:

1. Issue Price and Subscription Period: The issue price for this tranche is set at ₹6,199 per gram, and investors can subscribe to the sovereign gold bonds until December 22.

2. Subscription Channels: Sovereign gold bonds will be available for purchase through scheduled commercial banks (excluding small finance banks, payment banks, and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, National Stock Exchange of India Limited, and Bombay Stock Exchange Limited.

3. Nature of Sovereign Gold Bonds: These government securities, denominated in grams of gold, act as substitutes for holding physical gold. The bonds will be issued as Government of India Stock under the Government Securities Act, 2006, and investors will receive a Certificate of Holding. Conversion into demat form is also an eligible option.

4. Term and Redemption Options: The tenor of the sovereign gold bonds is eight years, with an option for premature redemption after the fifth year. Investors can exercise this option on the date when interest is payable.

5. Discounts and Compensation: Applying online and making payments through digital modes comes with an advantage, as the Centre offers a discount of ₹50 per gram less than the nominal value. Additionally, investors receive a fixed rate of 2.50% per annum, paid semi-annually on the nominal value.

Subscription Limits and KYC Verification: The maximum subscription limits are 4 kg for individuals, 4 kg for Hindu Undivided Families (HUF), and 20 kg for trusts and similar entities per fiscal year. Know-your-customer (KYC) norms align with those for physical gold purchases, requiring documents such as Voter ID, Aadhaar card/PAN or TAN/Passport, along with the ‘PAN Number’ issued by the Income Tax Department for each application.

Investors are encouraged to seize this investment opportunity, aligning with the government's objective of channeling domestic savings into financial assets while reducing the demand for physical gold. The subscription period for Series III is open, paving the way for a secure and potentially rewarding investment in sovereign gold bonds.