SGBJAN29IX or SGBJAN29IX-GB is the name of a sovereign gold bond series 9 which was issued in January 2021 and is listed on the national stock exchange. This SGB was issued on 05th January 2021 by RBI. It was open for subscription from December 28, 2020 to January 01, 2021. As per the Reserve Bank of India, SGBs or Sovereign Gold Bond are government securities denominated in grams of gold. These are the substitutes for holding physical gold where a semi-annual interest is provided till the maturty date(Interest Rate 2.5% on Issue Price).
SGBJAN29IX Issue Price
Here the issue price is the 5000/-. The issue price of the bond is based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. December 22 - 24, 2020.
Interest on SGBJAN29IX
Here the interest amount is calculated on the face value amount which is Rs. 5000/- and will pay interest of Rs. 62.50 semi-annually on 05th January and on 05th July periodically till the maturity date.
Redemption Date SGBJAN29IX?
On maturity or redemption date which is 05th January 2029, it is going to be redeemed and will pay back maturity amount which will depend on the Gold Price as per IBJA Rates at the time of maturity. The amount will be credited to your Demat linked bank account on the maturity date.
Units Issued under this SGB Series
Because of the high face value here, interest payout is also high, along with this; liquidity is also high in the secondary market. Liquidity is high due to high subscription and due to high face value in this issue. The total Subscription unit is 2869886 as per RBI data.
ISIN Code of this SGB
IN0020200377 is the Unique International Securities Identification Number of SGBJAN29IX.
How to buy SGBJAN29IX?
If you are planning to invest in this SGB then you need to have a Demat account to hold and a trading account to place buy order on stock exchanges. If you have a Demat account and a trading account with Upstox or Zerodha (open your trading account now by clicking on the name) then you can easily buy any SGBs from the secondary market. If you want to buy this SGB from the secondary market then you just need to place an order on your stockbroker’s platform by searching the name SGBJAN29IX (for placing an order on NSE) or SGBJAN29 (for placing an order on BSE). Before buying you should calculate the return on this SGB because the prices are trading at a premium, to know the calculation steps click here.
Bonus
To know about each and every listed gold bond on stock exchanges you can check out this link and select gold bonds https://www.moneyseth.com/bonds/
Note: Before buying any SGB from the secondary market do calculate your returns so that you don't miss the benefit of interest payment (Sovereign Gold Bond Return Calculation).
If you have doubts then feel free to ask in the comment section.
