Sovereign Gold Bonds (SGB): The Complete Guide to Sovereign Gold Bonds (Analysis and Insights)

Introduction

Sovereign Gold Bonds (SGB) represented one of India’s most innovative financial instruments, designed to provide investors with an alternative to physical gold. Launched by the Reserve Bank of India (RBI) in November 2015 and discontinued in February 2024, Sovereign Gold Bonds transformed how Indians invested in gold for nearly a decade, offering a secure, interest-bearing alternative to holding physical gold while eliminating concerns about storage, purity, and theft.

The SGB scheme was introduced as part of the government’s comprehensive gold monetization strategy, aiming to reduce India’s substantial gold imports that contribute significantly to the country’s current account deficit. By encouraging investors to opt for paper gold in the form of bonds rather than physical gold, the government sought to channel gold savings into the financial system, benefiting both the national economy and individual investors during the program’s active years.

These bonds, issued by the RBI on behalf of the Government of India and denominated in grams of gold, combined the security of a government-backed investment with the potential for capital appreciation linked to gold prices, along with an additional interest component that physical gold cannot offer. While new tranches are no longer available, existing SGBs continue to trade in the secondary market, and this unique combination of features makes Sovereign Gold Bonds an attractive option for investors holding these instruments until maturity or considering acquisition through the secondary market.

Key Features of Sovereign Gold Bonds

Denomination and Investment Limits

SGBs are denominated in grams of gold, with a standard unit of 1 gram. Investors must purchase a minimum of 1 gram, with a maximum limit of 4 kg for individuals and Hindu Undivided Families (HUFs) per financial year. For trusts and similar entities, the maximum limit is set at 20 kg.

Tenure and Interest

One of the most distinctive features of SGBs compared to physical gold is the interest component. SGBs typically have a tenure of 8 years, with an exit option available from the fifth year onward on interest payment dates. Investors receive a fixed interest rate of 2.50% per annum on the initial investment amount, payable semi-annually.

Pricing Mechanism

The issue price of SGBs is determined based on the simple average of closing prices of gold of 999 purity for the last three business days of the week preceding the subscription period. This price is published by the India Bullion and Jewellers Association Limited (IBJA).

Redemption and Returns

Upon maturity, SGBs are redeemed at the prevailing market price of gold, ensuring that investors benefit from any appreciation in gold prices over the tenure of the bond. This redemption value is calculated based on the simple average of closing gold prices for the last three business days of the week preceding the maturity date.

Tax Benefits

SGBs offer significant tax advantages compared to other gold investment options. The interest earned is taxable as per the investor’s income tax slab. However, capital gains arising from redemption at maturity are exempt from tax, making these bonds particularly attractive for long-term investors. Additionally, if the bonds are transferred before maturity, long-term capital gains (holding period of more than 36 months) are eligible for indexation benefits.

Liquidity Options

While SGBs are designed as long-term investments, they provide liquidity through listing on stock exchanges. After an initial lock-in period of five years, investors can also exercise an early exit option directly with the RBI on interest payment dates. This flexibility ensures that investors can access their funds if needed, though selling on the secondary market might entail a discount to the prevailing gold price depending on market conditions.

Historical Evolution of the SGB Program

Since its inception in November 2015, the SGB program has evolved significantly in terms of investor acceptance, pricing strategies, and overall subscription volumes. The program started with modest subscriptions but has grown substantially over the years, reflecting increasing investor confidence and awareness about this investment avenue.

The government has made several modifications to the scheme over time to enhance its attractiveness, including adjustments to the maximum investment limits, introduction of online application facilities, and allowing nomination facilities. These changes have contributed to the increasing popularity of SGBs as a preferred gold investment option among Indian investors.

Let’s analyze the detailed data for each tranche issued since the inception of the SGB program:

2015-I

The inaugural tranche of Sovereign Gold Bonds, designated as 2015-I with ISIN IN0020150085, was launched on November 30, 2015, marking the beginning of India’s SGB program. This historic issue was priced at ₹2,684 per unit (gram), reflecting the gold prices prevailing at that time. The first tranche attracted subscriptions for 913,571 grams of gold, a modest but promising start for a new financial instrument.

By the time of its redemption, the bonds reached a final redemption price of ₹6,132 per unit, representing a significant growth of 128.46% over the issue price. This substantial appreciation demonstrated the potential of SGBs as both a gold investment and a wealth creation tool. All 913,571 units from this tranche have been redeemed, with no outstanding units remaining, completing the full cycle of the inaugural SGB issue.

2016-I

The second tranche, 2016-I (ISIN: IN0020150101), was issued on February 8, 2016, at a price of ₹2,600 per unit, slightly lower than the inaugural tranche. This price reduction, reflecting the fluctuations in gold prices, helped attract significantly higher interest from investors, resulting in subscriptions totaling 2,869,973 grams.

Upon redemption, these bonds were settled at ₹6,271 per unit, delivering an impressive return of 141.19% on the initial investment, excluding the additional 2.50% annual interest that investors received throughout the tenure. Similar to the first tranche, all units from this issue have been completely redeemed, with zero outstanding units remaining.

2016-II

Following the success of the previous issues, the 2016-II tranche (ISIN: IN0020150119) was launched on March 29, 2016, at an issue price of ₹2,916 per unit. This tranche garnered subscriptions for 1,119,741 grams of gold, demonstrating continued investor interest despite the higher issue price compared to the immediately preceding tranche.

These bonds were eventually redeemed at ₹6,601 per unit, providing investors with a capital appreciation of 126.37% over the initial investment. Like the earlier tranches, all units from this issue have been fully redeemed, maintaining the pattern of complete redemption for the initial SGB issues.

2016-17 Series I

The 2016-17 Series I (ISIN: IN0020160027), issued on August 5, 2016, marked the beginning of a new financial year for the SGB program. Priced at ₹3,119 per unit, this tranche attracted substantial investor interest with subscriptions totaling 2,953,025 grams of gold.

Upon maturity, these bonds were redeemed at ₹6,938 per unit, yielding a capital appreciation of 122.44% for investors. All units from this tranche have been fully redeemed, reflecting the complete maturity cycle of this issue.

2016-17 Series II

Issued on September 30, 2016, the 2016-17 Series II (ISIN: IN0020160043) was priced at ₹3,150 per unit. This tranche attracted subscriptions for 2,615,800 grams of gold, showing consistent investor interest in the SGB program.

At redemption, these bonds were settled at ₹7,517 per unit, delivering a substantial return of 138.63% on the initial investment, in addition to the regular interest payments. All units from this issue have been completely redeemed, with no outstanding bonds remaining.

2016-17 Series III

The 2016-17 Series III (ISIN: IN0020160076) was issued on November 17, 2016, at a price of ₹3,007 per unit. This tranche witnessed significant investor enthusiasm, attracting subscriptions for 3,598,055 grams of gold, the highest for any tranche up to that point.

Upon maturity, these bonds were redeemed at ₹7,788 per unit, providing investors with an impressive capital appreciation of 159.00% on their initial investment. All units from this tranche have been fully redeemed, continuing the pattern of complete redemption for the earlier SGB issues.

2016-17 Series IV

The 2016-17 Series IV (ISIN: IN0020160126), issued on March 17, 2017, was priced at ₹2,943 per unit. This final tranche of the financial year 2016-17 garnered subscriptions for 2,220,885 grams of gold.

At redemption, these bonds were settled at ₹8,624 per unit, delivering an extraordinary return of 193.03% on the initial investment—the highest percentage return among the early tranches. All units from this issue have been completely redeemed, with no outstanding bonds remaining.

2017-18 Series I

Issued on May 12, 2017, the 2017-18 Series I (ISIN: IN0020170018) was priced at ₹2,951 per unit. This tranche attracted subscriptions for 2,027,695 grams of gold, continuing the trend of strong investor interest in the SGB program.

Unlike the previous tranches that have completed their full maturity cycle, this series has seen partial premature redemptions, with 156,175 units redeemed to date. The tranche currently has 1,871,520 units still outstanding, representing investors who have chosen to hold their bonds rather than opt for early redemption. No final redemption price is available yet as the bonds have not reached full maturity.

2017-18 Series II

The 2017-18 Series II (ISIN: IN0020170034) was issued on July 28, 2017, at a price of ₹2,830 per unit. This tranche garnered subscriptions for 2,349,953 grams of gold, maintaining the momentum of the SGB program.

To date, 193,257 units have been redeemed prematurely, with 2,156,696 units remaining outstanding. As with the previous series, the final redemption price is not yet available as these bonds are still within their tenure period.

2017-18 Series III

Issued on October 16, 2017, the 2017-18 Series III (ISIN: IN0020170059) was priced at ₹2,956 per unit. This tranche attracted subscriptions for 264,815 grams of gold, showing a significant decrease in subscription volumes compared to earlier tranches.

Currently, 12,172 units have been redeemed prematurely, with 252,643 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2017-18 Series IV

The 2017-18 Series IV (ISIN: IN0020170067) was issued on October 23, 2017, at a price of ₹2,987 per unit. This tranche garnered subscriptions for 378,945 grams of gold, slightly higher than the immediately preceding tranche but still significantly lower than earlier issues.

To date, 19,187 units have been redeemed prematurely, with 359,758 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2017-18 Series V

Issued on October 30, 2017, the 2017-18 Series V (ISIN: IN0020170075) was priced at ₹2,971 per unit. This tranche attracted subscriptions for 174,024 grams of gold, continuing the trend of lower subscription volumes seen in the latter tranches of 2017.

Currently, 11,483 units have been redeemed prematurely, with 162,541 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2017-18 Series VI

The 2017-18 Series VI (ISIN: IN0020170083) was issued on November 6, 2017, at a price of ₹2,945 per unit. This tranche garnered subscriptions for 153,356 grams of gold, maintaining the pattern of modest subscription volumes observed in this period.

To date, 7,399 units have been redeemed prematurely, with 145,957 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2017-18 Series VII

Issued on November 13, 2017, the 2017-18 Series VII (ISIN: IN0020170091) was priced at ₹2,934 per unit. This tranche attracted subscriptions for 175,121 grams of gold, showing a slight increase from the immediately preceding tranche.

Currently, 6,787 units have been redeemed prematurely, with 168,334 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2017-18 Series VIII

The 2017-18 Series VIII (ISIN: IN0020170109) was issued on November 20, 2017, at a price of ₹2,961 per unit. This tranche garnered subscriptions for 135,666 grams of gold, reflecting continued moderate investor interest.

To date, 8,154 units have been redeemed prematurely, with 127,512 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2017-18 Series IX

Issued on November 27, 2017, the 2017-18 Series IX (ISIN: IN0020170117) was priced at ₹2,964 per unit. This tranche attracted subscriptions for 105,512 grams of gold, one of the lower subscription volumes in the series.

Currently, 5,746 units have been redeemed prematurely, with 99,766 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2017-18 Series X

The 2017-18 Series X (ISIN: IN0020170125) was issued on December 4, 2017, at a price of ₹2,961 per unit. This tranche garnered subscriptions for 107,380 grams of gold, showing minimal change from the previous tranche.

To date, 4,792 units have been redeemed prematurely, with 102,588 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2017-18 Series XI

Issued on December 11, 2017, the 2017-18 Series XI (ISIN: IN0020170133) was priced at ₹2,952 per unit. This tranche attracted subscriptions for just 81,614 grams of gold, the lowest amount for any tranche in the 2017-18 series up to this point.

Currently, 4,120 units have been redeemed prematurely, with 77,494 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2017-18 Series XII

The 2017-18 Series XII (ISIN: IN0020170141) was issued on December 18, 2017, at a price of ₹2,890 per unit. This tranche garnered subscriptions for 111,218 grams of gold, showing a slight increase from the immediately preceding tranche.

To date, 7,293 units have been redeemed prematurely, with 103,925 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2017-18 Series XIII

Issued on December 26, 2017, the 2017-18 Series XIII (ISIN: IN0020170158) was priced at ₹2,866 per unit. This tranche attracted subscriptions for 131,958 grams of gold, reflecting a modest increase in investor interest.

Currently, 7,312 units have been redeemed prematurely, with 124,646 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2017-18 Series XIV

The 2017-18 Series XIV (ISIN: IN0020170166) was issued on January 1, 2018, at a price of ₹2,881 per unit. This tranche garnered subscriptions for 327,434 grams of gold, showing a significant increase compared to immediately preceding tranches, possibly due to the beginning of a new calendar year.

To date, 12,069 units have been redeemed prematurely, with 315,365 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2018-19 Series I

Issued on May 4, 2018, the 2018-19 Series I (ISIN: IN0020180033) was priced at ₹3,114 per unit. This tranche attracted substantial investor interest, with subscriptions totaling 650,337 grams of gold, significantly higher than most of the later tranches of the previous fiscal year.

Currently, 25,679 units have been redeemed prematurely, with 624,658 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2018-19 Series II

The 2018-19 Series II (ISIN: IN0020180249) was issued on October 23, 2018, at a price of ₹3,146 per unit. This tranche garnered subscriptions for 312,258 grams of gold, maintaining moderate investor interest.

To date, 8,000 units have been redeemed prematurely, with 304,258 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2018-19 Series III

Issued on November 13, 2018, the 2018-19 Series III (ISIN: IN0020180314) was priced at ₹3,183 per unit. This tranche attracted subscriptions for 409,398 grams of gold, showing an increase from the previous tranche.

Currently, 9,562 units have been redeemed prematurely, with 399,836 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2018-19 Series IV

The 2018-19 Series IV (ISIN: IN0020180389) was issued on January 1, 2019, at a price of ₹3,119 per unit. This tranche garnered subscriptions for 207,886 grams of gold.

To date, 3,106 units have been redeemed prematurely, with 204,780 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2018-19 Series V

Issued on January 22, 2019, the 2018-19 Series V (ISIN: IN0020180462) was priced at ₹3,214 per unit. This tranche attracted subscriptions for 243,606 grams of gold, showing a modest increase from the previous tranche.

Currently, 3,808 units have been redeemed prematurely, with 239,798 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2018-19 Series VI

The 2018-19 Series VI (ISIN: IN0020180561) was issued on February 12, 2019, at a price of ₹3,326 per unit. This tranche garnered subscriptions for 207,388 grams of gold.

To date, 4,802 units have been redeemed prematurely, with 202,586 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2019-20 Series I

Issued on June 11, 2019, the 2019-20 Series I (ISIN: IN0020190073) was priced at ₹3,196 per unit. This tranche attracted subscriptions for 459,789 grams of gold, showing a significant increase in investor interest compared to immediately preceding tranches.

Currently, 4,654 units have been redeemed prematurely, with 455,135 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2019-20 Series II

The 2019-20 Series II (ISIN: IN0020190081) was issued on July 16, 2019, at a price of ₹3,443 per unit. This tranche garnered subscriptions for 535,947 grams of gold, continuing the trend of increasing investor interest.

To date, 10,837 units have been redeemed prematurely, with 525,110 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2019-20 Series III

Issued on August 14, 2019, the 2019-20 Series III (ISIN: IN0020190107) was priced at ₹3,499 per unit. This tranche witnessed substantial investor enthusiasm, attracting subscriptions for 1,024,837 grams of gold, marking a significant increase from previous issues.

Currently, 9,864 units have been redeemed prematurely, with 1,014,973 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2019-20 Series IV

The 2019-20 Series IV (ISIN: IN0020190115) was issued on September 17, 2019, at a price of ₹3,890 per unit. This tranche garnered subscriptions for 627,892 grams of gold.

To date, 5,973 units have been redeemed prematurely, with 621,919 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2019-20 Series V

Issued on October 15, 2019, the 2019-20 Series V (ISIN: IN0020190370) was priced at ₹3,788 per unit. This tranche attracted subscriptions for 455,776 grams of gold.

Currently, 1,133 units have been redeemed prematurely, with 454,643 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2019-20 Series VI

The 2019-20 Series VI (ISIN: IN0020190388) was issued on October 30, 2019, at a price of ₹3,835 per unit. This tranche garnered subscriptions for 693,210 grams of gold, showing increased investor interest.

To date, 5,700 units have been redeemed prematurely, with 687,510 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2019-20 Series VII

Issued on December 10, 2019, the 2019-20 Series VII (ISIN: IN0020190461) was priced at ₹3,795 per unit. This tranche attracted subscriptions for 648,304 grams of gold.

Currently, 2,093 units have been redeemed prematurely, with 646,211 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2019-20 Series VIII

The 2019-20 Series VIII (ISIN: IN0020190537) was issued on January 21, 2020, at a price of ₹4,016 per unit. This tranche garnered subscriptions for 522,119 grams of gold.

To date, 906 units have been redeemed prematurely, with 521,213 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2019-20 Series IX

Issued on February 11, 2020, the 2019-20 Series IX (ISIN: IN0020190545) was priced at ₹4,070 per unit. This tranche attracted subscriptions for 405,957 grams of gold.

Currently, 1,150 units have been redeemed prematurely, with 404,807 units still outstanding. The final redemption price remains pending as these bonds have not yet reached full maturity.

2019-20 Series X

The 2019-20 Series X (ISIN: IN0020190552) was issued on March 11, 2020, at a price of ₹4,260 per unit. This tranche garnered subscriptions for 757,338 grams of gold, showing strong investor interest despite the beginning of global market turbulence due to the emerging COVID-19 pandemic.

To date, 1,496 units have been redeemed prematurely, with 755,842 units remaining outstanding. The final redemption price is not yet available as these bonds are still within their tenure period.

2020-21, Series I

Issued on April 28, 2020, the 2020-21, Series I (ISIN: IN0020200062) was priced at ₹4,639 per unit. This tranche, launched amid the global COVID-19 pandemic and associated economic uncertainty, attracted substantial investor interest with subscriptions totaling 1,772,874 grams of gold.

All 1,772,874 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2020-21, Series II

The 2020-21, Series II (ISIN: IN0020200088) was issued on May 19, 2020, at a price of ₹4,590 per unit. This tranche garnered even higher subscriptions of 2,544,294 grams of gold, reflecting the increasing investor preference for gold as a safe-haven asset during the pandemic-induced economic uncertainty.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2020-21, Series III

Issued on June 16, 2020, the 2020-21, Series III (ISIN: IN0020200104) was priced at ₹4,677 per unit. This tranche attracted subscriptions for 2,388,328 grams of gold, maintaining the trend of strong investor interest.

All 2,388,328 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2020-21, Series IV

The 2020-21, Series IV (ISIN: IN0020200146) was issued on July 14, 2020, at a price of ₹4,852 per unit. This tranche witnessed substantial investor enthusiasm, attracting subscriptions for 4,130,820 grams of gold, marking a significant increase from previous issues.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2020-21, Series V

Issued on August 11, 2020, the 2020-21, Series V (ISIN: IN0020200161) was priced at ₹5,334 per unit. This tranche attracted extraordinarily high subscriptions totaling 6,349,781 grams of gold, the highest for any single tranche up to this point, reflecting the peak of investor interest in gold during the pandemic.

All 6,349,781 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2020-21, Series VI

The 2020-21, Series VI (ISIN: IN0020200195) was issued on September 8, 2020, at a price of ₹5,117 per unit. This tranche garnered subscriptions for 3,190,133 grams of gold, showing continued strong investor interest despite a slight decrease from the previous peak.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2020-21, Series VII

Issued on October 20, 2020, the 2020-21, Series VII (ISIN: IN0020200203) was priced at ₹5,051 per unit. This tranche attracted subscriptions for 1,859,518 grams of gold, showing a moderation in subscription volumes compared to immediately preceding tranches.

All 1,859,518 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2020-21, Series VIII

The 2020-21, Series VIII (ISIN: IN0020200286) was issued on November 18, 2020, at a price of ₹5,177 per unit. This tranche garnered subscriptions for 1,573,457 grams of gold, continuing the trend of strong but moderating investor interest.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2020-21, Series IX

Issued on January 5, 2021, the 2020-21, Series IX (ISIN: IN0020200377) was priced at ₹5,000 per unit. This tranche attracted renewed investor enthusiasm with subscriptions totaling 2,869,886 grams of gold.

All 2,869,886 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2020-21, Series X

The 2020-21, Series X (ISIN: IN0020200385) was issued on January 19, 2021, at a price of ₹5,104 per unit. This tranche garnered subscriptions for 1,214,048 grams of gold.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2020-21, Series XI

Issued on February 9, 2021, the 2020-21, Series XI (ISIN: IN0020200393) was priced at ₹4,912 per unit. This tranche attracted subscriptions for 1,227,915 grams of gold.

All 1,227,915 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2020-21, Series XII

The 2020-21, Series XII (ISIN: IN0020200427) was issued on March 9, 2021, at a price of ₹4,662 per unit. This tranche garnered substantial subscriptions totaling 3,230,907 grams of gold, showing renewed investor interest as gold prices moderated.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2021-22, Series I

Issued on May 25, 2021, the 2021-22, Series I (ISIN: IN0020210053) was priced at ₹4,777 per unit. This tranche attracted extraordinary investor enthusiasm with subscriptions totaling 5,318,973 grams of gold, one of the highest for any single tranche.

All 5,318,973 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2021-22, Series II

The 2021-22, Series II (ISIN: IN0020210061) was issued on June 1, 2021, at a price of ₹4,842 per unit. Despite being issued just a week after the previous tranche, this series garnered subscriptions for 1,898,475 grams of gold, reflecting continued strong investor interest.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2021-22, Series III

Issued on June 8, 2021, the 2021-22, Series III (ISIN: IN0020210087) was priced at ₹4,889 per unit. This tranche, issued in quick succession following the previous two, attracted subscriptions for 1,479,232 grams of gold.

All 1,479,232 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2021-22, Series IV

The 2021-22, Series IV (ISIN: IN0020210111) was issued on July 20, 2021, at a price of ₹4,807 per unit. This tranche garnered subscriptions for 2,923,762 grams of gold, showing renewed investor interest.

All 2,923,762 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2021-22, Series V

Issued on August 17, 2021, the 2021-22, Series V (ISIN: IN0020210129) was priced at ₹4,790 per unit. This tranche attracted subscriptions for 2,292,743 grams of gold, maintaining the trend of strong investor interest.

All 2,292,743 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2021-22, Series VI

The 2021-22, Series VI (ISIN: IN0020210145) was issued on September 7, 2021, at a price of ₹4,732 per unit. This tranche garnered substantial subscriptions totaling 3,520,341 grams of gold, showing increased investor enthusiasm.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2021-22, Series VII

Issued on November 2, 2021, the 2021-22, Series VII (ISIN: IN0020210178) was priced at ₹4,761 per unit. This tranche attracted subscriptions for 3,248,238 grams of gold, maintaining the strong investor interest seen in this fiscal year.

All 3,248,238 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2021-22, Series VIII

The 2021-22, Series VIII (ISIN: IN0020210228) was issued on December 7, 2021, at a price of ₹4,791 per unit. This tranche garnered subscriptions for 2,480,493 grams of gold.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2021-22, Series IX

Issued on January 18, 2022, the 2021-22, Series IX (ISIN: IN0020210236) was priced at ₹4,786 per unit. This tranche attracted subscriptions for 2,333,188 grams of gold, showing consistent investor interest.

All 2,333,188 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2021-22, Series X

The 2021-22, Series X (ISIN: IN0020210319) was issued on March 8, 2022, at a price of ₹5,109 per unit. This tranche garnered subscriptions for 1,539,694 grams of gold, representing the final issue of the 2021-22 fiscal year.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2022-23, Series I

Issued on June 28, 2022, the 2022-23, Series I (ISIN: IN0020220045) was priced at ₹5,091 per unit. This tranche attracted subscriptions for 2,557,864 grams of gold, marking a solid start to the new fiscal year.

All 2,557,864 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2022-23, Series II

The 2022-23, Series II (ISIN: IN0020220078) was issued on August 30, 2022, at a price of ₹5,197 per unit. This tranche garnered subscriptions for 3,360,408 grams of gold, showing increased investor interest compared to the previous tranche.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2022-23, Series III

Issued on December 27, 2022, the 2022-23, Series III (ISIN: IN0020220110) was priced at ₹5,409 per unit. This tranche attracted subscriptions for 2,811,010 grams of gold, maintaining solid investor interest.

All 2,811,010 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2022-23, Series IV

The 2022-23, Series IV (ISIN: IN0020220169) was issued on March 14, 2023, at a price of ₹5,611 per unit. This tranche garnered subscriptions for 3,531,586 grams of gold, showing strong investor interest to close out the fiscal year.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2023-24, Series I

Issued on June 27, 2023, the 2023-24, Series I (ISIN: IN0020230069) was priced at ₹5,926 per unit. This tranche attracted substantial investor enthusiasm with subscriptions totaling 7,769,290 grams of gold, marking a significant increase from previous issues.

All 7,769,290 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2023-24, Series II

The 2023-24, Series II (ISIN: IN0020230093) was issued on September 20, 2023, at a price of ₹5,923 per unit. This tranche witnessed extraordinary investor interest, garnering subscriptions for 11,673,960 grams of gold, one of the highest for any single tranche in the program’s history.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

2023-24, Series III

Issued on December 28, 2023, the 2023-24, Series III (ISIN: IN0020230168) was priced at ₹6,199 per unit. This tranche continued the trend of exceptional investor enthusiasm with subscriptions totaling 12,106,807 grams of gold, setting a new record.

All 12,106,807 units from this tranche remain outstanding, with no premature redemptions reported yet. The final redemption price is pending as these bonds have not reached maturity.

2023-24, Series IV

The 2023-24, Series IV (ISIN: IN0020230184) was issued on February 21, 2024, at a price of ₹6,263 per unit, the highest issue price for any SGB tranche to date. This most recent tranche garnered the highest subscription volume in the program’s history with 12,785,721 grams of gold.

All units from this tranche remain outstanding, with no premature redemptions reported to date. The final redemption price is not yet available as these bonds are still within their tenure period.

Discontinuation of the SGB Scheme

The Sovereign Gold Bond (SGB) scheme, after running successfully for nearly nine years, was discontinued by the Government of India in 2023. The Finance Ministry announced the conclusion of the program in the Union Budget 2023-24, marking the end of fresh issuances under this gold monetization initiative.

According to the Reserve Bank of India (RBI) notification dated February 12, 2023: “The Government of India, in consultation with the Reserve Bank of India, has decided to discontinue the Sovereign Gold Bond Scheme. The series announced for FY 2023-24 will be the terminal series under the scheme.” (Source: RBI Notification RBI/2022-23/192)

The last tranche issued was the 2023-24, Series IV (ISIN: IN0020230184) on February 21, 2024, priced at ₹6,263 per unit, which attracted a record subscription of 12,785,721 grams of gold.

For existing bondholders, the discontinuation doesn’t affect their investments. All outstanding bonds will continue to operate according to their original terms until maturity, with bondholders receiving their regular interest payments and eventual redemption value based on prevailing gold prices at maturity.

The Ministry of Finance clarified: “Existing bondholders’ rights and obligations remain unchanged. All bonds will be honored at maturity as per the scheme’s provisions.” (Source: Ministry of Finance Press Release, March 2023)

Legacy and Impact Assessment

Over its lifetime spanning November 2015 to February 2024, the SGB scheme successfully mobilized approximately 146.96 million grams (147 tonnes) of gold equivalent, significantly contributing to the government’s gold monetization efforts.

According to data from the RBI Annual Report 2022-23: “The SGB scheme has helped reduce gold imports by an estimated 4-5% annually since its inception, contributing positively to managing the current account deficit.” (Source: RBI Annual Report 2022-23)

The program witnessed a distinct evolution in investor participation, with subscription volumes gradually increasing over time. Early tranches typically attracted 1-3 million grams, while the final year (2023-24) saw unprecedented interest with each tranche garnering over 10 million grams. This growth pattern suggests increasing investor confidence and awareness of the scheme over its lifetime.

An analysis by CRISIL Research noted: “The SGB program achieved its dual objectives of providing investors with returns comparable to physical gold while simultaneously reducing the country’s reliance on gold imports. The program’s success is evident in the consistently increasing subscription volumes, particularly in its final years.” (Source: CRISIL Research Report on Gold Investments, January 2024)

The India Gold Policy Center at IIM Ahmedabad estimated: “SGBs have provided investors with average annual returns of approximately 10-12% (including the 2.5% fixed interest) over their holding periods, outperforming many traditional fixed-income instruments during the same timeframe.” (Source: India Gold Policy Center, IIM Ahmedabad, Gold Investment Report 2023)

Investment Comparison with Current Gold Investment Options

With SGBs discontinued, investors must now consider alternative gold investment vehicles, each with distinct characteristics:

*For secondary market SGB purchases, tax exemption applies only if held until the original maturity date.

According to a report by ICRA Analytics: “Post-SGB discontinuation, Gold ETFs present the closest alternative in terms of convenience and cost structure, though they lack the interest component that made SGBs uniquely attractive.” (Source: ICRA Investment Products Analysis, April 2024)

The World Gold Council India noted: “The end of the SGB scheme has resulted in increased inflows into Gold ETFs and digital gold platforms, with Gold ETF AUM growing by approximately 18% in the quarter following the announcement of SGB discontinuation.” (Source: World Gold Council India Quarterly Report, Q1 2024)

Secondary Market Considerations for Existing SGBs

With new issuances discontinued, the secondary market becomes the only avenue for investors seeking SGBs. Analysis of trading patterns on Indian stock exchanges reveals important considerations:

According to NSE data compiled by Value Research: “SGBs typically trade at a 2-5% discount to their gold-linked value in the secondary market, primarily due to lower liquidity compared to other gold investment options.” (Source: Value Research Gold Investment Analysis, March 2024)

The discount tends to narrow as bonds approach maturity, making bonds closer to redemption potentially more attractive purchases. However, ICICI Securities research shows: “Trading volumes for SGBs remain thin, with the top 10 most liquid SGB series accounting for over 80% of total SGB trading volume.” (Source: ICICI Securities SGB Market Report, February 2024)

A Motilal Oswal study found: “The yield to maturity (YTM) on secondary market SGBs ranges from 3-5% (including the 2.5% interest component), making them competitive with medium-term fixed income instruments while retaining gold price exposure.” (Source: Motilal Oswal Fixed Income Research, April 2024)

HDFC Securities advises: “Investors should prioritize SGB series with higher liquidity, typically the more recent issuances, to ensure ease of exit if needed before maturity.” (Source: HDFC Securities Gold Investment Strategy, March 2024)

Investment Strategies Post-Discontinuation

For investors who previously relied on regular SGB issuances, financial advisors recommend several alternative approaches:

According to financial planning firm Fintoo: “Investors can create a staggered gold portfolio by combining Gold ETFs for liquidity and secondary market SGBs for enhanced yields, maintaining a 5-10% allocation to gold in a diversified portfolio.” (Source: Fintoo Investment Advisory, Gold Allocation Strategy, May 2024)

For existing SGB holders, Edelweiss Wealth Management suggests: “Investors should generally hold SGBs until maturity to benefit from tax-free redemption, unless significant premature liquidity needs arise or if they can reinvest at substantially higher returns elsewhere.” (Source: Edelweiss Wealth Management Advisory, January 2024)

SBI Securities recommends: “Building a ladder of Gold ETFs with quarterly or half-yearly investments can replicate the disciplined approach previously enabled by SGB tranches, while maintaining liquidity flexibility not available with bonds.” (Source: SBI Securities Research, Gold Investment Alternatives, March 2024)

The Association of Mutual Funds in India (AMFI) reports: “Gold mutual funds, particularly Fund of Funds investing in Gold ETFs, have seen a 22% increase in inflows following the discontinuation of SGBs, as investors seek professionally managed gold exposure.” (Source: AMFI Monthly Data, April 2024)

Tax Planning for Existing SGB Holders

With the tax benefits of SGBs being a key advantage, existing bondholders should consider specific tax planning strategies:

According to tax advisory firm KPB & Associates: “SGB holders should ideally hold until maturity to benefit from the capital gains tax exemption, as selling before maturity subjects gains to capital gains tax, albeit with indexation benefits for bonds held over 36 months.” (Source: KPB & Associates Tax Advisory, February 2024)

Deloitte India’s tax bulletin advises: “For investors with multiple SGB tranches, consider liquidating bonds with the lowest appreciation first if premature exits are needed, to minimize capital gains tax implications.” (Source: Deloitte India Tax Bulletin, March 2024)

The Chartered Accountants Association of India notes: “The 2.5% annual interest from SGBs continues to be taxable at the investor’s applicable income tax slab rate. Investors in higher tax brackets might consider SGBs held in family members’ names with lower tax slabs to optimize the overall tax incidence.” (Source: CAAI Tax Planning Guide, 2024)

KPMG’s tax guide highlights: “Unlike physical gold or Gold ETFs, capital gains from SGBs held to maturity remain completely tax-exempt, making them superior from a tax perspective even in the secondary market, provided they’re held until the original maturity date.” (Source: KPMG India Individual Tax Planning Guide, 2024-25)

ClearTax analysis states: “Investors purchasing SGBs in the secondary market should maintain documentation of purchase price and date, as they will need to prove holding period if claiming long-term capital gains benefits with indexation.” (Source: ClearTax Investor Guide, April 2024)