Sovereign Gold Bond on WebNotes

How to buy a Sovereign Gold Bond on the secondary market via Kite

Tue, 12 May 2026 00:00:00 +0000

This guide explains how to buy Sovereign Gold Bonds (SGBs) in the exchange-listed secondary market through Zerodha’s Kite platform. SGBs are government securities denominated in units of one gram of gold, issued by the Government of India under the SGB Scheme administered by the Reserve Bank of India (RBI) . Once issued, SGBs are listed on the NSE and BSE and can be bought and sold like listed securities.

Buying in the secondary market offers two advantages over a new primary issue: (a) you can buy at any time, not only during the two-to-three-day subscription windows that RBI opens periodically; and (b) secondary market prices often trade at a discount to the prevailing gold price NAV, allowing entry below the RBI’s official issue price.

How to redeem an SGB at maturity

Tue, 12 May 2026 00:00:00 +0000

This guide explains the process of redeeming a Sovereign Gold Bond (SGB) at its 8-year maturity date. SGBs are issued by the Government of India under the SGB Scheme, administered by the Reserve Bank of India (RBI) . Each SGB tranche has a fixed tenor of 8 years from its original issue date. At maturity, RBI redeems the bonds at the prevailing gold price and the capital gains arising from the maturity redemption are exempt from capital gains tax for all holders, including secondary market buyers who hold to maturity.

How to redeem an SGB early (5th-year window)

Tue, 12 May 2026 00:00:00 +0000

This guide explains how to exercise the early-exit option for Sovereign Gold Bonds (SGBs) during the RBI’s designated premature redemption windows. The SGB Scheme allows investors to exit their SGB holdings before the 8-year maturity, but only on specific coupon payment dates starting from the 5th year after the original issue date. This is commonly called the “5th-year window” or the premature redemption window.

Early exit is an important option for investors who no longer wish to hold the SGB to maturity or who need liquidity. However, unlike maturity redemption, early-exit proceeds are not exempt from capital gains tax. The tax implications differ significantly from the 8-year maturity route, making it important to understand both options.