Have you applied for the latest issue of the Sovereign Gold Bonds (SGB)? Whether you have applied for the Sovereign Gold Bonds 2023-24 Series IV offline or online, you must check your allotment details. But, how to check it? ET Wealth Online explains.
The SGB 2023-24 Series IV issue opened for subscription on February 12, 2024. Investors had time till February 16, 2024, to apply for SGB 2023-24 Series IV. Usually, SGBs are allotted to investors within seven days from the last date of applying for the said SGB.
According to Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies, Angel One, a fintech company, “If the investor applies to SGB issue through his demat account and others, it would normally take a week time to see if the said SGB subscription is allotted to the investor.”
Do keep in mind that if you have applied for SGB, the insurance is guaranteed, unlike an initial public offering (IPO) where there is no guarantee that an investor will get the shares if applied. “If the customer meets the eligibility criteria, produces a valid identification document, and remits the application money on time, he/she will receive the allotment,” said the RBI in a frequently asked question (FAQ) about SGB.
As an investor, you must keep a tab on your investments and check the allotment details.
Also read: How to increase your chances of IPO allotment.
How to check Sovereign Gold Bonds allotment if you apply online
There are two ways an investor can apply online for SGBs – through their stockbroker or banks/India post payment bank/others. If applying through a stockbroker then the SGB would be visible in the individual’s demat account, according to RBI guidelines. If applying online through banks and other designated institutions, then the said SGB would be visible through the respective bank’s netbanking or other interface. Further banks and other designated institutions would intimate the individual through SMS email or both. Make sure to keep track of your inbox.Also read: Tax free premature redemption of SGB is allowed only within this 21-day annual window.
Apart from the intimation from the banks and other designated institutions, the RBI would also share a certificate of holding via email to the SGB investors. To get this certificate make sure to put in your email ID at the time of applying SGB.
According to RBI FAQs about SGBs, “The customers will be issued Certificate of Holding on the date of issuance of the SGB. Certificate of Holding can be collected from the issuing banks/SHCIL offices/Post Offices/Designated stock exchanges/agents or obtained directly from RBI via email if the email address is provided in the application form.”
So, you can check your mail mentioned during the application, to know your SGB allotment status. Those individuals who apply for SGBs offline will need to collect a physical certificate of holding. This certificate will be given by their issuing bank or other designated institutions from where they are buying the SGBs. Apart from physical copy, an investor applying offline will also get a digital certificate of holding from the RBI same as other online investors would get.
However, do note that a discount of Rs 50 on the issue price is offered only to those investors who are buying an SGB online and not to those who are buying an SGB offline.
SGB in demat account
According to Sapna Narang, Managing Partner, Capital league, a boutique wealth management company, “The SGB allotment reflects in the demat account of the investor in about 2 weeks after closure of issue and one week after allotment. This is because SGBs get listed on the stock exchange about one week after allotment.”
Can you convert offline or online purchased SGBs into demat?
According to RBI’s FAQ about SGB, even if an investor has purchased SGBs offline or online through banks and other options, can convert those SGBs into demat form even after they are allotted.
“The bonds can be held in a demat account. A specific request for the same must be made in the application form itself. Till the process of dematerialization is completed, the bonds will be held in RBI’s books. The facility for conversion to demat will also be available subsequent to allotment of the bond,” said the RBI in a FAQ about SGB.
