What is a Sovereign Gold Bond (SGB)? Who issues an SGB?

Sovereign Gold Bonds (SGB) are gold bonds issued by the Reserve Bank of India (RBI) on behalf of the Government of India. 

They are issued in denominations of grams of gold and are a substitute for holding physical gold. Their value is determined by the price of gold of 999 purity as published by the India Bullion and Jewellers Association Ltd. Investors have to pay the issue price, and the gold bonds will be redeemed in cash on maturity. 

Investor CategoryMinimum InvestmentMaximum Investment
Individuals and HUFs
1 gram
4 Kgs per year
Trusts and similar entities (as notified by the Government from time to time during the financial year)
1 gram
20 Kgs per year

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