New SGB issuance: When will government issue next tranche of sovereign gold bonds? Here is the answer
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Whether Sovereign Gold Bonds (SGBs) scheme is a failure?
If not, by when Government is going to release the next tranches of SGBs for the public?
How does the government decide when to release new SGB tranches?
Has the geopolitical situation affected SGB issuance?
When will the next SGB tranche be released?
FAQS on SGB
What is a Sovereign Gold Bond (SGB)?
The Ministry of Finance responded to questions about the effectiveness and future of the Sovereign Gold Bond (SGB) scheme, highlighting its success since its inception in 2015 and explaining the impact of global geopolitical tensions on issuing new tranches of SGBs.The last tranche of SGBs - SGB 2023-24 Series IV was issued in February 2024.ET Wealth Online tells you in detail the questions asked by Members of Parliament on the Sovereign Gold Bond scheme and the government's response on the same.Rajani Ashokrao Patil, Member of Parliament, Rajya Sabha, asked the following questions on SGBs from the government:Whether Sovereign Gold Bonds (SGBs) scheme is a failure; and if not, by when is the Government going to release the next tranches of SGBs for the public?Pankaj Chaudhary gave a written reply in Rajya Sabha to the question raised on SGBs:'The Sovereign Gold Bonds (SGB) scheme was introduced in 2015 to help reduce the demand for physical gold. As of March 31, 2025, the SGB scheme garnered subscription of about 146.96 ton of gold amounting to about Rs 72,275 crore through 67 different tranches. Against this, 18.81 ton of SGB subscription has already been redeemed till June 15, 2025.'' The Government of India mobilizes resources through various modes including Government Securities, Treasury Bills, Sovereign Gold Bonds, etc. A decision on the mode of mobilizing resources is taken after due consideration of the relative costs to the Government. The recent global geopolitical unrest has impacted gold prices significantly, increasing the cost of borrowing through SGBs. The Government's endeavor is to minimize the cost of borrowings and hence it is imperative for a prudent debt management strategy to carefully consider the above factor while deciding on offering new tranches of Sovereign Gold Bonds.'The decision to issue new SGBs depends on the overall cost of borrowing for the government. It is evaluated alongside other instruments like Government Securities and Treasury Bills to ensure a prudent debt management strategy.Yes. Global geopolitical unrest has driven up gold prices, which in turn has increased the cost of borrowing via SGBs. This is a key factor currently influencing the government's decision on whether to launch new SGB tranches.While the government has not announced specific dates for the next tranche, it stated in Parliament that any such decision will depend on market conditions, particularly gold price trends and borrowing costs.SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.The nominal value of Gold Bonds shall be in Indian rupees fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewelers Association Limited, for the last 3 business days of the week preceding the subscription period.SGB matures after 8 years and premature withdrawal of SGB redemption is allowed from fifth year. One month before maturity, the investor will be informed of the bond's upcoming maturity date. On the date of maturity, the maturity proceeds will be credited to the bank account specified in the record. If there are any changes to any details, such as account numbers or email addresses, the investor must notify the bank.
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