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What is Sovereign Gold Bond (SGB)?

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They serve as alternatives to holding physical gold. Investors purchase these bonds at the issue price in cash, and the bonds will be redeemed in cash upon maturity. The Reserve Bank issues these bonds on behalf of the Government of India.

Benefits Of Sovereign Gold Bond (SGB)​

  1. Sovereign Guarantee: SGBs come with a sovereign guarantee.
  2. No Storage Risks and Costs: Investors don't need to worry about storage risks and costs associated with physical gold.
  3. Liquidity: They can be sold in the market, ensuring liquidity.
  4. No Capital Gains Taxes: There are no capital gain taxes on SGBs.
  5. No Making Charges: Unlike physical gold, there are no making charges.
  6. Collateral for Loans: SGBs can be used as collateral to obtain loans.
  7. Interest Earnings: Investors receive an annual return of 2.5%.

How to Buy SGB from Wealthy App

You can purchase SGBs through the Wealthy app by following these simple steps. Please note that orders are accepted only during the bidding window, which is between 10:00 AM to 4:30 PM.

  1. Switch to Broking Mode: If you're not in broking mode, click the broking toggle button to enter broking mode.

  2. Click the SGB Banner on Home Page: By clicking on this banner, you'll be directed to the SGB page, where you can view details of the live SGB issue.

  3. Click Apply: On the card, click the apply button.

  4. Add Funds or Confirm: If you have sufficient funds, the confirm button will be enabled by default. Otherwise, an option to add funds will be provided.

  5. Success Page: You'll see a confirmation screen with details of the order. You can also find the order details in the order book under the SGB tab.

  6. Funds: Your funds will be reduced by the amount of SGBs purchased.

How to Cancel SGB Order

SGB orders can be canceled from the order book during the open bidding window (between 10:00 AM to 4:30 PM). Orders that have been successfully executed or rejected cannot be canceled. To cancel an order, follow these steps:

  1. Open Order Book: Access the order book and navigate to the SGB tab, where you can view your order details. The most recent order will be at the top.

  2. Open Order Details: Click on the open order to view its details. If the order is still open, you can cancel it.

  3. Click Cancel: Clicking the cancel button will cancel the order, and you can check its status as "canceled" in the order book.

  4. Funds: On order cancellation, your funds will remain unchanged for the day, and the refunded amount will be available the next morning.

Allotment of SGB

Sovereign Gold Bonds will be allotted within 7 days after the bidding window closes.