Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»Govt May Discontinue Sovereign Gold Bond Scheme: Reports
    Investments

    Govt May Discontinue Sovereign Gold Bond Scheme: Reports

    July 29, 20244 Mins Read


    The Sovereign Gold Bond (SGB) Scheme allows resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions to invest in gold in a digital format. These bonds are denominated in grams of gold, with a minimum investment of one gram, and have an eight-year tenure, providing an exit option after the fifth year on interest payment dates.

    Investors in SGBs earn a fixed annual interest rate of 2.5 per cent, payable semi-annually, and the redemption price is linked to the prevailing market price of gold at maturity. The capital gains tax arising on redemption is exempted for individual investors, and the bonds can be used as collateral for loans, adding to their attractiveness. SGBs can also be traded on stock exchanges, offering liquidity.

    Now, as per reports, the government might scale back or even discontinue the Sovereign Gold Bonds (SGB) scheme, deeming it too costly, according to a source familiar with the matter, Money Control has reported.

    This change comes alongside the Union budget’s decision to reduce customs duties on gold and silver from 15 per cent to 6 per cent. The lower customs duty is anticipated to decrease the demand for Sovereign Gold Bonds. Consequently, after the tax cut, SGB prices on the National Stock Exchange dropped by 2-5 per cent.

    video-carousel

    Previously, gold and silver were subject to a 15 per cent duty, comprising a 10 per cent basic customs duty and a 5 per cent Agriculture Infrastructure Development Cess. This tax reduction has caused a significant drop in gold prices on the Multi Commodity Exchange (MCX), with prices falling by over Rs 4,000 to Rs 68,900. Similarly, SGB prices on the National Stock Exchange (NSE) decreased by 2-5 per cent. For instance, SGBAUG24 fell by 2.6 per cent to Rs 7,275 per unit, while the most substantial drop was observed in SGBDEC2513, which declined by 5.98 per cent to Rs 7,550.

    The initial tranche of SGBs, issued on November 30, 2015, reached its final redemption in November 2023. Investors in the SGB scheme 2016-17 Series I, issued in August 2016, are approaching their final redemption, scheduled for the first week of August 2024. The original issue price of the Sovereign Gold Bond 2016-17 Series I was Rs 3,119, with an annual interest rate of 2.75 per cent.

    Previously, gold and silver were subject to a 15 per cent duty, comprising a 10 per cent basic customs duty and a 5 per cent Agriculture Infrastructure Development Cess. This tax reduction has caused a significant drop in gold prices on the Multi Commodity Exchange (MCX), with prices falling by over Rs 4,000 to Rs 68,900. Similarly, SGB prices on the National Stock Exchange (NSE) decreased by 2-5 per cent. For instance, SGBAUG24 fell by 2.6 per cent to Rs 7,275 per unit, while the most substantial drop was observed in SGBDEC2513, which declined by 5.98 per cent to Rs 7,550.

    The initial tranche of SGBs, issued on November 30, 2015, reached its final redemption in November 2023. Investors in the SGB scheme 2016-17 Series I, issued in August 2016, are approaching their final redemption, scheduled for the first week of August 2024. The original issue price of the Sovereign Gold Bond 2016-17 Series I was Rs 3,119, with an annual interest rate of 2.75 per cent.

    top videos

    View All

  • Arvind Kejriwal Latest News | CBI files Chargesheet Against Delhi CM Arvind Kejriwal | News18

  • Rajendra Nagar Tragedy | Delhi Police To Likely Call MCD Officials To Come And Join Investigation

  • Girl Murdered In Uran News | 22 Year Old Girl Murdered In Navi Mumbai | Breaking News | News18

  • Student Death In Rajendra Nagara News | Owner And Co-Ordinator Booked Under 14 Days Custody | News18

  • Delhi Basement UPSC Aspirant Deaths Spark Massive Protest In Old Rajendra Nagar | News18 | N18V

  • Business Desk

    A team of writers and reporters decodes vast terms of personal finance and makin

    first published: July 29, 2024, 11:44 IST



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Luke Littler’s retirement hint, tournament withdrawal and theory on what he really means

    Investments

    Interest rates held at 4% as Bank of England says UK ‘not out of the woods’ on inflation – live updates

    Investments

    Your Forgotten 401(k) Could Cost You A Small Fortune In Retirement

    Investments

    City grabs biggest share of Scottish investment ‘in years’

    Investments

    Expensive Stocks, Cheap Bonds Point to a Turning Tide in Asset Allocation

    Investments

    How much monthly retirement income could you generate from a £100,000 SIPP?

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Commodities

    Saint-Étienne. Le groupe stéphanois de metal ChessTown sort son premier album

    Stock Market

    Dominion Among Utilities Allowed Exemption for Coal Emissions From Trump’s EPA

    Precious Metal

    Here’s What to Watch After Silver’s Big Breakout

    Editors Picks

    Paris. Ivre, un chef de la police municipale interpellé pour rébellion lors d’un festival de métal

    February 23, 2025

    Historical Gold Mineralisation identified at Flicka Lake

    October 30, 2024

    Tax changes: Could they drive wealthy away?

    August 22, 2025

    How to Choose the Best Cryptocurrency Exchange in 2025: The Ultimate Investor’s Checklist

    March 29, 2025
    What's Hot

    Guitarist fired from metal band after saying he was leaving over ‘low pay’

    August 27, 2025

    Ce groupe de métal de Loire-Atlantique tourne un clip avec un clown dans le bus et dans un supermarché !

    March 23, 2025

    Crédit Agricole et agriculture: 3 faits marquants sur 140 ans d’histoire

    May 11, 2025
    Our Picks

    When a cutout of Jarvis Cocker nearly killed a metal icon

    September 8, 2025

    IQ CBRE NextGen Real Estate ETF (NYSEARCA:ROOF) Shares Down 0.2%

    July 21, 2024

    the star of the 90s, who fled to the USA, wrote a will — EADaily, October 25th, 2024 — Society, Russia

    October 25, 2024
    Weekly Top

    Swiss commodities trader beats bid to revive Congo oilfield claim

    September 18, 2025

    Silver Price Forecast: XAG/USD steadies above $41.50

    September 18, 2025

    Kahleah Copper Best WNBA Prop Bets Today vs New York Liberty 9/19/2025

    September 18, 2025
    Editor's Pick

    Rise of cryptocurrency loans in Australia spark concerns about financial ‘contagion’

    February 10, 2025

    Agricultural pollution regulations in Wales changes planned

    April 1, 2025

    Saifuzzaman’s UK property empire goes bust

    August 11, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.