Sovereign Gold Bonds (SGBs) are bonds issued by the Reserve Bank of India (RBI) on behalf of the Government of India that give exposure to gold. They have a fixed tenure of 8 years with a 5-year lock-in period. After the end of the lock-in period, clients can make a premature redemption on interest payment dates.

All SGBs are listed and can be sold in the secondary market just like stocks, but liquidity may be an issue. SGBs are linked to the market price of gold and offer 2.5% annual interest on the issue price. 

The interest is paid once every 6 months from the date of the issue of the bond, and the last interest is paid on maturity, along with the principal, to the bank account. The date of the issue can be found on the RBI website (WEB). In case of any queries, reach out to CDSL (WEB) or NSDL (WEB) as they act as Registrar and Transfer agents (RTA's) for SGBs.

Existing SGB can be traded on your trading application like any other instrument.

New SGB are purchased through primary markets (Only individual, Hindu Undivided Family (HUF) and trust account holders can buy SGBs in the primary market.
Corporate, Partnership, Limited Liability Partnership (LLP) and Non-Resident Indians (NRIs) account holders cannot buy SGBs in the primary market.)

SGB can also be used as collateral as per the approved collateral list provided by exchange.