What is the minimum and maximum limit for investment when applying for Sovereign Gold Bonds?
The Bonds are issued in denominations of one gram of gold and in multiples thereof.
The minimum investment in SGBs shall be one gram. The maximum limit of subscription depends on the category of investor and are as follows:
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4 Kgs for an individual
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4 Kgs for a Hindu Undivided Family (HUF)
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20 Kgs for trusts and similar entities notified by the government from time to time per fiscal year (April – March).
In the case of joint holding, the limit applies to the first applicant. The annual ceiling will include bonds subscribed under different tranches during initial issuance by the government and those purchased from the secondary market. The ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.
Please note:
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Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.
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It is essential that investors remain informed about these limits to ensure compliance and avoid any unintentional breaches.
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Responsibility for adherence to these limits lies with the Investor. Any breach or non-compliance with RBI guidelines will be attributed to that respective investor.
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Clients are therefore urged to take adequate preventive and monitoring measures to ensure that their SGB holdings remain within permissible limits.