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Sovereign gold bonds 2023-24 series III subscription is now open: Seize the investment opportunity

18 December 20235 mins read by Angel One
Here are all the details of Sovereign Gold Bonds 2023-24 Series III, which is backed by sovereign guarantees, a unique gold investment avenue with tax benefits.
Sovereign gold bonds 2023-24 series III subscription is now open: Seize the investment opportunity
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The Reserve Bank of India (RBI) recently opened the subscription period for Sovereign Gold Bonds (SGBs) 2023-24 Series III, allowing investors to secure their investment in gold. In this article, we will delve into the details of this investment opportunity, exploring key aspects such as issue price, interest rates, eligibility, and the advantages of investing in SGBs.

Issue Details 

The subscription period for SGBs 2023-24 Series III commenced on December 18 and will close on December 22, with the bonds scheduled to be issued on December 28, 2023. The issue price, set by the RBI at Rs 6,199 per gram of gold, reflects a simple average of the closing price of gold with 999 purities in the preceding three working days, as published by the India Bullion and Jewellers Association. Investors subscribing online and paying through digital modes enjoy a discounted issue price of Rs 6,149 per gram.

Interest Rates and Tax Benefits

SGBs offer a fixed interest rate of 2.50% per annum on the initial investment amount, credited semi-annually to the investor’s bank account. The interest payout is tax-deductible, providing a unique advantage over physical gold investments. Additionally, the capital appreciation at maturity is tax-exempt, enhancing the overall tax efficiency of the investment.

Eligibility and Investment Limits 

Residents in India, including individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions, are eligible to invest in SGBs. The minimum investment is 1 gram, with bonds issued in denominations of one gram or multiples thereof. Individual and HUF investors have a maximum subscription limit of 4 kg per fiscal year, while trusts and government-notified entities can subscribe up to 20 kg annually.

How to Buy Sovereign Gold Bonds Online 

Investors can purchase SGBs online through two avenues: the secondary market or primary issuance. Online purchases often come with a Rs. 50 discounts compared to the nominal price. For secondary market purchases, investors can visit the BSE or NSE websites, while scheduled commercial banks facilitate primary issuance.

The online process:

  • Log in to your online banking account.
  • Select the ‘eServices’ option, then the ‘Sovereign Gold Bond’ option.
  • Read and accept the terms and conditions before clicking ‘Proceed’.
  • Fill out the registration form with the necessary information and click the ‘Submit’ button.
  • Enter the number you want to subscribe to and the nominee’s information in the purchase form.
  • Select ‘Submit’ once all of the required information has been entered.

Should investors consider SGBs? 

SGBs are an attractive investment option for those willing to hold the investment until maturity. Backed by sovereign guarantees, they eliminate credit risk and provide a fixed-interest income, addressing the income gap typically associated with gold investments. The tax benefits, including exemption on capital appreciation at maturity, further enhance their appeal.


The financial outlook suggests that SGBs offer a compelling investment opportunity, particularly given the historical track record of steady and high returns. While gold prices can experience volatility, factors such as geopolitical tensions, central bank buying, and concerns about global economic conditions can support gold prices.


Sovereign Gold Bonds 2023-24 Series III presents a well-structured investment option for those seeking exposure to gold. Investors should carefully consider their investment horizon, risk tolerance, and portfolio allocation before deciding to subscribe. With the upcoming SGB 2023-24 Series IV in February 2024, investors may strategize their gold allocation based on their outlook and financial goals. As always, it is advisable to consult with financial advisors to make informed investment decisions.

Disclaimer:This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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