Sovereign Gold Bonds (SGBs) have become a preferred investment choice
in India since their launch in November 2015. Offering an alternative to
physical gold, they provide a fixed annual interest rate of 2.5%. However,
investing in SGBs is subject to specific eligibility criteria.
Are Non-Resident Indians (NRIs) eligible to invest in Sovereign Gold
Bonds?
As per current FEMA regulations, NRIs are not permitted to make new
investments in Sovereign Gold Bonds. However, individuals who initially
invested in SGBs as resident Indians can retain their holdings until maturity
or opt for early redemption. Any proceeds from these investments must
remain within India.
Can NRIs inherit or be nominated for Sovereign Gold Bonds?
Yes. If an NRI is named as a nominee for SGBs, they must hold the bonds
until maturity, adhere to the standard exit procedures, and accept that
interest and maturity proceeds will be non-repatriable.
What happens to existing Sovereign Gold Bond investments if an
investor’s status changes from resident to NRI?
If a resident investor becomes an NRI, they can continue to hold their
existing Sovereign Gold Bonds until maturity or opt for early redemption.
However, they cannot make new SGB investments.
What are some alternative gold investment options available to NRIs?
As an alternative to SGBs, NRIs can invest in Gold ETFs, gold mutual
funds, digital gold, or physical gold in the form of jewelry, coins, and bars.
For expert guidance on cross-border taxation, visit www.rtulsian.com or
reach out to us on ishan@rtulsian.com or WhatsApp us on +91
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