6 days ago
NRIs Cannot Buy New Sovereign Gold Bonds Under Current Rules
Sovereign Gold Bonds are investments whose value is linked to gold prices.
NRIs cannot buy new SGBs under the current rules.
If someone bought SGBs before becoming an NRI, they can keep those bonds.
The bonds can be held until early redemption or their eight-year maturity.
At maturity, the money is credited to the registered bank account.
New SGB issues are no longer available for subscription.
Existing SGBs can still be bought through the secondary market.
NRIs can also invest in physical gold, e-gold, gold mutual funds and Gold ETFs.
Like other gold investments, SGBs can lose market value if gold prices fall.
NRIs cannot make fresh investments in Sovereign Gold Bonds under existing rules.
NRIs who bought SGBs while resident Indians may continue holding them until redemption or maturity.
The SGB scheme is closed to new subscriptions, but existing bonds remain valid and tradable in the secondary market.
Eligible SGB investors face annual limits of 4 kilograms for individuals and HUFs, and 20 kilograms for trusts and similar entities.
NRIs, PIOs and OCIs can consider physical gold, e-gold, gold mutual funds and Gold ETFs, with demat accounts needed for several options.
- Who
- NRIs, resident Indian investors, PIOs and OCIs are discussed; SGBs are available to eligible residents, HUFs, trusts, universities and charitable institutions.
- What
- The article explains whether NRIs can buy, retain or trade Sovereign Gold Bonds and describes alternative gold investments.
- Where
- India, including India’s SGB and secondary markets.
- When
- Under the existing rules; SGBs have an eight-year tenure, and the relevant financial year runs from April to March.
- Why
- NRIs face restrictions on fresh SGB subscriptions, while existing holdings and other gold-investment routes remain available under stated conditions.
Key facts
- Fresh SGB investment by NRIs
- Not permitted under the existing rules.
- Existing SGB holdings
- May be retained if purchased while the investor was resident in India.
- SGB tenure
- Eight years, with automatic redemption at maturity.
- Current subscription status
- The SGB scheme is no longer open for new subscriptions.
- Secondary market
- Existing SGBs can be purchased through the secondary market.
- Annual individual limit
- 4 kilograms for eligible individual investors.
- Annual trust limit
- 20 kilograms for trusts and similar entities.
- Alternative investments
- Physical gold, e-gold, gold mutual funds and Gold ETFs.
Sources
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