This video is in Hindi and covers the following topics;
क्या आपको Secondary Market से Sovereign Gold Bonds (SGBs) खरीदने चाहियें?
The primary market is where securities are created. In the primary market, companies sell new stocks and bonds to the public for the first time, such as with an initial public offering (IPO).
Sovereign Gold Bond FY2021-22 Series I: May 17 to 21, 2021
Sovereign Gold Bond FY2021-22 Series II: May 24 to 28, 2021
Sovereign Gold Bond FY2021-22 Series III: May 31 to June 4, 2021
Sovereign Gold Bond FY2021-22 Series IV: July 12 to 16, 2021
Sovereign Gold Bond FY2021-22 Series V: August 9 to 13, 2021
Sovereign Gold Bond FY2021-22 Series VI: August 30 to September 3, 2021
Sovereign Gold Bond FY2021-22 Series VII: October 25 to 29, 2021
Sovereign Gold Bond FY2021-22 Series VIII: November 29 to December 3, 2021
Sovereign Gold Bond FY2021-22 Series IX: January 10 to 14, 2021
Sovereign Gold Bond FY2021-22 Series X: February 28 to March 4, 2022
While the secondary market is where those securities are traded by investors
Since each SGB series gets listed on the stock exchanges, one can buy units from the BSE and NSE if one holds a demat account. 50+ series are trading in the cash segment of the BSE and NSE.
Flexibility with the maturity and lock-in period
SGBs mature after 8 years and come with lock in period of 5 years.
If you want flexibility with the maturity period and avoid lock-in, you can buy SGB’s from secondary market too.
Price
The buying price in the secondary market is normally below the physical gold price/issue price of fresh issue. This is typically a result of sellers willing to accept a discount in return for a quick exit from the instrument.
Interest Dynamics
SGB gives you 2.5% interest per annum paid twice a year. The interest is payable on the issue price of a particular series, not on your buying price in the secondary market. Thus, your purchase price should be lower than the issue price.
Taxation Benefits
The capital gains tax in SGB’s is nil if you hold it till maturity, that is after eight years. This is applicable even if you buy it in secondary market for the residual maturity.
Liquidity
Liquidity is not great if you want to buy in large quantity
Significant gap in buyer and seller price
Inter-depository Transfers
NSDL to CDSL (and vice versa) depository transfer takes time to reflect it in your holdings…(read more)
LEARN MORE ABOUT: Treasury Inflation Protected Securities
REVEALED: Best Investment During Inflation
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Sovereign Gold Bonds (SGBs) have gained popularity as an investment option for those looking to diversify their portfolios and hedge against inflation. Issued by the government of India, SGBs are denominated in multiples of grams of gold, offering investors a way to invest in gold without having to physically hold the precious metal.
SGBs are issued in tranches by the Reserve Bank of India (RBI) and can be purchased through banks, the Stock Holding Corporation of India Limited (SHCIL), designated post offices, and stock exchanges. The bonds have a maturity period of 8 years and can be prematurely encashed after the fifth year from the date of issue. SGBs also offer an additional fixed interest rate of 2.5% per annum, payable semi-annually on the nominal value.
While purchasing SGBs directly from the primary market has been the traditional route, some investors may consider buying the bonds from the secondary market for various reasons. The secondary market refers to the buying and selling of existing SGBs through stock exchanges or other financial intermediaries.
One reason for buying SGBs from the secondary market is the potential for a better deal. Prices of SGBs in the secondary market may fluctuate based on demand and supply dynamics, as well as changes in the market price of gold. This means that investors may be able to find SGBs at a price that is lower than the current issue price, providing them with a potential cost-saving opportunity.
Another reason to consider buying SGBs from the secondary market is the ability to access liquidity. While SGBs have a fixed maturity period, investors may need to liquidate their investment before the maturity date for various reasons. In such cases, selling SGBs in the secondary market can provide investors with an exit route, allowing them to convert their investment into cash, subject to prevailing market conditions.
However, it is important to note that buying SGBs from the secondary market comes with its own set of risks. The price and availability of SGBs in the secondary market can be influenced by various factors, including market conditions, interest rates, and macroeconomic developments. Additionally, investors should be mindful of the transaction costs associated with buying and selling SGBs in the secondary market, which can impact the overall returns on the investment.
Furthermore, investors should also consider the tax implications of buying SGBs from the secondary market. Capital gains arising from the sale of SGBs in the secondary market are subject to tax, and investors should factor in these considerations when making their investment decisions.
In conclusion, while buying Sovereign Gold Bonds from the secondary market may offer potential benefits such as cost savings and liquidity, investors should carefully assess the risks and consider their individual investment objectives before making any decisions. It is advisable to consult with a financial advisor or wealth manager to weigh the pros and cons of buying SGBs from the secondary market and determine the most suitable approach based on one’s financial goals and risk tolerance.
Could you pls explain the difference between Face value and issue price..also as i understand the 2.5% ROI is based on face value..why shouldnt i buy Gold bond with highest face value and lowest trading price to give best returns..
Which SGB series to buy now?
Apne bahut ache se samjhaya
Thankyou.
But mera ek query bhi hai
Ki kisi sgb me volume jayada hai aur kisi me kam, aisa kyun?
Pls bataye
I have a question that i bought a SGB from secondary market and checked it's interest dates but didn't received any interest from the sgb in my bank account
very nice video . specially the cdsl nsdl explnation.
Which sgb to select from the top three- more interest or lesser gold price is best for long term
Does the interest(2.5%) is tax free if I buy it from secondary market?
Great Video sir …!!!thanks
Sir if I buy any SGB now which will be matured after two years from now
Shall my return will be taxable or not kindly answer
Thanks
Hi Sir, i have only one question. Do we have to pay brokerage charges if we buy under secondary market. I heard you buy through demat account. Which means Are you paying brokerage for each transaction?
Nice video . Explained in detail. Was planning to buy from primary market but after watching your video will buy from secondary. Sir can u plz guide what are things to keep in mind while buying from secondary market. As per your video got to know select that series where issue price is high and buying price is low. But have some doubt. Listed below
1. On wch date we should buy SGB from secondary market?
How we come to know INTREST CREDIT DATE so that we can buy before that date and will get intrest BENIFIT into our dmat linked bank account.?
Have checked comments, where intrest credit dates are diffrent. (11, 2 just example). Plz guide sir. Thank u for your valuable time.
Hey. Firstly, awesome work on the video. It was very informative.
I had one doubt though. Although I read the previous comments and got it somewhat cleared, yet it's always better to hear straight from the horse's mouth. So here it goes:
I am planning to buy the SGB Dec'30 maturity, from the secondary market right now (current date is 9th March'23). Will I still be eligible for the half yearly interest payout in June'23? (I am sure i will be eligible for the Dec'23 half yearly interest payout, just doubtful about the June'23 payout)
It would be awesome if you could provide some clarity. Thank you so much again. And keep up the good work!
I was trying to understand the taxation effect on purchase from secondary market from long time. No one explained it in such a simple way. Thanks a lot
Very well explained, I mean maza aa gya. Mujhe confusion thi ki secondary me se lu ya nhi, aur kya mujhe interest milega ya nhi ya kab mature ho jayegi, aur tax kaise lagega. Everything is well explained
Thank You
Secondary market se puchanged sgb pr intrest bank account m ni aata.. Solution btao
If we buy SGB maturing this year, 2023 still Eligible for interest and is it capital gain interest applicable?
And if same SGB sell before maturing this year 2023, still taxes applied on it?
Is there any liquidity issue if we buy small quantity like 4-5 gm? Mean if we buy for trading purpose.
My sgbfeb24-gb bought at 5695 but now after 1 day its showing 30% of loss I don’t know how this is possible can you tell me about it?
Hi, This is the best video i found on SGB's as you have cleared many doubts. Just wanted to ask you some things iam still confused about :
1) You mentioned in a comment that ''If you hold till maturity (June 2029) the you will get 2.5% interest every year. Your interest receiving ex-dates will be 1st June & 1 December (1.25% each) for this scheme. Actual interest may be credited in a day or two later.'"
Suppose i buy the above mentioned SGB on 30/31 May , 29/30 Nov or on ex date who will get the 1.25 % interest of last six months
2) Do i need a Retail Direct account with my Demat as well ? Or Demat alone would be sufficient.
3) I checked on NSE website there is a huge difference between the prices of different maturity, Why is that ?
Thanks for the informative video, one question….where can I find the data of issue price , LTP, time left to maturity ?
Also, how do we read the SGB listed on exchanges ?
Hello simple… if I buy 1gm for 5000rs and wait till maturity …I'll be getting 2.5% interest on 5000rs every Yr…..so after maturity how much money will be automatically credited to my account????
Hi Sir, Thank you for valuable information,
I have few question can i buy SGBJUN29II though secondary market using kite app any time like if i want purchase on 26 Dec 2022, and my maturity period will be Jun 2029 right, there after RBI will automatically deposit the amount in my account without my intervention right ?
2. if i hold till 2029 June will i get 2.5% ?
3. What is the difference between buying in secondary market (Kite app) and purchasing through Coin app ?
kindly share your answers. thanks in advance.
thank you sir
Excellent video
Where we can check face value,date of interest?
Regds
How is interest payment are given yearly or after 5yrs
From where should we buy the new issue or the secondary market
Not found expiry date. Only month and year. How to understand the particular date of that month maturity?
Can I keep a sgb bought from demat beyond maturity date?
sir I buy sgb from open market but not get interest in bank account.
where to find vhart to compere LTP and issue price
Thank you for information.
Very good explanation
Nice information
One quick question if i buy sgb from secondary market so can I get certificate for having it.?
I bought a gold bond SGBAUG28V from the secondary market. It shows in my Dmate account. I want to know about which year & series. Launched at what price? How can I confirm that I will receive interest & Maturity deposit in my bank account? I have not received any sms or email regarding this.
Nice info given as compared to so called famous youtuber dont know why your viewers are so less