How to search Sovereign Gold Bonds on Kite
Sovereign Gold Bonds (SGBs) are government-issued bonds denominated in grams of gold, paying 2.5% annual interest and redeemable at the prevailing gold price at maturity. After their issue window closes, SGBs list on NSE and BSE for secondary-market trading. This guide covers searching for and adding them to a Kite marketwatch.
Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with Zerodha.
Step-by-step procedure
Five steps per the procedure infobox. The notes below cover SGB series identifiers, secondary-market pricing, and the gap between market price and gold price.
Tranche identifier convention
Each SGB issue is identified by:
- The issue date (month and year of the original RBI tranche).
- The series suffix (Series I, II, III etc. within each financial year).
Examples (search syntax in Kite varies slightly by build):
| Tranche | Symbol pattern |
|---|---|
| SGB 2023-24 Series III | SGBNOV23, SGB SEP 23 |
| SGB 2024-25 Series I | SGB JUN 24 |
| SGB 2021-22 Series XII | SGBMAR22 |
| SGB 2020-21 Series VIII | SGBNOV20 |
Several dozen SGB tranches are listed at any given time, each maturing at a different date.
Pricing on the secondary market
SGB market price ≠ live gold price. The market price reflects:
- The current gold price (the redemption reference at maturity).
- The remaining tenor to maturity.
- The 2.5% coupon (which is paid on the original issue price, not the market price).
- A liquidity discount on some tranches due to thin trading.
A new SGB tranche typically lists close to the prevailing gold price. Older tranches (close to maturity) trade at a small premium or discount to the spot gold price.
Liquidity
SGB secondary-market trading is thin. Some tranches trade only a few hundred units per day. The bid-ask spread can be 1-3% on illiquid tranches. For larger ticket sizes, use:
- Primary subscription during new issue windows (RBI announces 6 tranches per year typically).
- Block trades via institutional channels.
Interest payment and tax
The 2.5% annual interest is taxable as “income from other sources”. Maturity proceeds (redemption to cash at the prevailing gold price) are exempt from capital gains tax for individuals under section 47(viic) of the Income Tax Act. Secondary-market exit (selling on NSE / BSE before maturity) is taxed as long-term capital gain after 12 months, with indexation applicable per the rules for the FY.
For complex tax situations or large amounts, consult a Chartered Accountant before filing.
Why monitor on the marketwatch
- Track the price gap between the SGB and spot gold.
- Identify tranches trading at unusual premiums or discounts.
- Compare yields across tranches to decide which to buy.
See also
- How to add Bharat Bond ETF to Kite
- How to add scrips to the Kite marketwatch
- How to search stocks, ETFs, MFs, IPOs, G-secs on Kite
- How to use the marketwatch on Kite
- How to brand-search on the Kite marketwatch
- How to add instruments to the marketwatch on Kite
- Sovereign gold bond
- Sovereign gold bond tax treatment
- Gold ETF (India)
- Gold futures on MCX
- Bharat Bond ETF
- Government securities (India)
- Debt mutual fund
- Capital gains tax (India)
- Kite (Zerodha)
- Kite web
- Kite mobile app
- Zerodha
- Zerodha Coin
- Market depth view on Kite
- Day’s change in absolute and percentage
- Reserve Bank of India
- National Stock Exchange
- Bombay Stock Exchange
- 52-week high and low on the marketwatch
External references
References
- Reserve Bank of India, Sovereign Gold Bond Scheme, master direction, rbi.org.in.
- Income Tax Act, 1961, section 47(viic) (SGB maturity exemption for individuals).
- NSE India, Secondary market listings of SGB tranches, nseindia.com.
- Zerodha Support, Sovereign Gold Bonds on Kite, support.zerodha.com.