Why wait for RBI? You can buy sovereign gold bonds every day, decide the price yourself… know the process

The Reserve Bank of India (RBI) had launched the Sovereign Gold Bond (SGB) scheme to get more benefit on investment in gold. This scheme gives an opportunity to invest in gold at a lower price than the market and also gives a fixed return of 2.5 percent on a maturity period of 8 years. Along with this, the benefit of the increase in the price of gold during eight years is also given. RBI issues Sovereign Gold Bond from time to time, during which you can invest. But do you know that it can be bought and sold every day? Let’s know the complete details.

Actually, an opportunity is given to invest in Sovereign Gold Bond (SGB) from the secondary market (stock market). Here one can invest in Sovereign Gold Bond in two ways. First– SGB can be bought when RBI issues tranche of Sovereign Gold Bond and announces the date. Second– This is a method through which whether RBI is releasing the installment or not, you can buy it from your demat account.

SGB ​​can be bought and sold in the live market through the National Stock Exchange. To put it in simpler terms, trading on SGB can be done under NSE without RBI announcing the date. It has no expiry date. You can buy and hold it until its maturity is complete. Or if you want, you can sell it before maturity.

What are the benefits of buying from the secondary market?

• If you buy from the secondary market then you will not have to wait for RBI’s date.
• You can sell this purchased gold bond any time, for which there will be no lock in period.
• Here gold can be found at a discounted rate, as it is often seen that people in need of money sell SGB at a lower price before maturity.

How to buy SGB in the live market?

1. First of all you have to go to the website of National Stock Exchange.
2. Now here you have to search- SGB in live market
3. After clicking here, a chart will open, which will show which SGB is trading.
4. Now copy the symbol of the SGB you want to buy and search it on your broker platform.
5. After searching, you can buy gold as per the price limit and the number of grams you want.

SGB NSE Trading Chart

Keep these things in mind while buying in the secondary market
If you buy SGB from the secondary market, you should try to get it at the lowest price. Also, you should keep tracking its price from time to time. You should know about the maturity period, liquidity and other important things of the SGB you are buying.

How much tax will be charged?
If you have bought Sovereign Gold Bond (SGB) from the secondary market and then sold it in the secondary market, then short or long term capital gain tax will be levied on your profit. But if you hold it till maturity and sell it back to RBI, then no tax has to be paid. However, the interest of 2.5 percent comes under taxable income.