How to Buy Sovereign Gold Bonds SGBs in Zerodha

Investing in Sovereign Gold Bonds SGB is an excellent way to invest in gold. If you are wondering how to buy Sovereign Gold Bonds in Zerodha, this post will provide essential guidance.

How to Buy Sovereign Gold Bonds SGBs in Zerodha: Let's get the basics right

Before you jump into how to buy Sovereign Gold Bonds SGBs, it's important to have clarity on some essential basics. Sovereign Gold Bonds are investments in Digital Gold and are considered safe since they are government securities. The best part is that with SGBs, you don't have to worry about finding secure storage since RBI will take good care of everything. Besides earning returns from SGBs, you can use them as collateral for loans.

The maturity period of an SGB is eight years, but in the fifth year, you can redeem your SGB if you want. Regarding the maximum limit, an individual investor can buy from 1 gram to 4 kg of SGBs, while trusts and universities can buy up to 20 kilograms of SGBs. Regarding the return on investment, the interest rate is set to 2.5% annually, and you receive returns twice every year for eight years if you hold it till maturity.

How to Buy Sovereign Gold Bonds SGBs in Zerodha: The Essential Steps

To invest in Sovereign Gold Bonds through Zerodha, you must have a Zerodha account. Once you have a Zerodha account, you can follow these steps to buy SGBs:

  • Log into your Zerodha Kite app.
  • Next, tap on Bids and then Govt. securities.
  • After that, select the SGB and tap on Place bid.
  • You will need to tap on Place bid once again, and lastly, you can tap on Submit.
how to buy sovereign gold bonds sgbs in zerodha
how to buy sovereign gold bonds sgbs in zerodha

How to Buy Sovereign Gold Bonds SGBs in Zerodha: The Process After You Place a Bid

The Process

Apart from knowing the essential steps to buying a Sovereign Gold Bond (SGB), it's also crucial to see the following process after you place a bid. Once you place the bid for an SGB with Zerodha Kite, it will be bought through the primary market, and the units shall be allowed within 15 days after the closure of the offer. After listing, it can take an extra 15 days for the units to be displayed in the Kite app holdings. However, things are slightly different if you buy SGB through Kite Marketwatch (secondary market), and SGB units purchased through the secondary market will reflect in holdings on T+2 day.

Right after the offer closes, you will be notified of the status of your SGB order through an email. Your Zerodha account will be debited on the last day of the order collection. However, it's crucial to remember that credit from stocks you sell on the closing day of the issue will not be considered for purchasing SGBs.


Regarding eligibility, individuals, Hindu Undivided Family (HUF), and trust account holders are allowed to buy SGBs in the primary market. However, Corporate, Partnership, Limited Liability Partnership (LLP), and Non-Resident Indians (NRIs) account holders cannot buy SGBs in the primary market.

You may also like to read: Sovereign Gold Bond SGB February 2024.


What are Sovereign Gold Bonds (SGBs)?

SGBs are government-backed securities linked to the price of gold. They offer a safe and convenient way to invest in gold without storing it physically.

What are the benefits of buying SGBs in Zerodha?

Zerodha offers a user-friendly platform for buying SGBs online. SGBs offer a fixed interest rate of 2.5% per annum, plus capital appreciation based on gold price changes. They are considered safe investments as the government backs them.

Who is eligible to buy SGBs in Zerodha?

Individuals, Hindu Undivided Families (HUFs), and trust accounts can buy SGBs in the primary market through Zerodha. Corporate, partnership, LLP, and NRI accounts are not eligible for primary market purchases.

What is the minimum and maximum investment amount for SGBs?

The minimum investment is 1 gram of gold, and the maximum is 4 kg for individuals and HUFs and 20 kg for trusts and universities.

How do I place an order for SGBs in Zerodha Kite?

  • Log in to your Zerodha Kite app.
  • Click on “Bids” and then “Govt. securities.”
  • Select the desired SGB issue and click “Place bid.”
  • Enter the quantity of gold you want to buy and confirm your order.

What happens after I place an order for SGBs?

  • Your order will be submitted to the primary market.
  • If your order is successful, the SGB units will be allotted to you within 15 days of the offer closure.
  • The units will be reflected in your Zerodha holdings within 15 days after listing.

What is the maturity period for SGBs?

The maturity period is eight years, but you can redeem your SGBs after the fifth year.

What is the interest rate on SGBs?

The fixed interest rate is 2.5% per annum, paid semi-annually.

Can I use SGBs as collateral for loans?

Yes, SGBs can be used as collateral for loans from banks and financial institutions.


After reading this post, I am sure you are clear on how to buy Sovereign Gold Bonds SGBs in Zerodha. I have also explained some essential basics that you need to bear in mind when you are up to buying Sovereign Gold Bonds SGBs. After reading this post, you can purchase SGBs in Zerodha confidently.

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