CDSL Circular on - Prescribed limits on holding Sovereign Gold Bonds
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Date of Issue:10-7-2025
Issuer: CDSL
Prescribed limits on holding Sovereign Gold Bonds
Highlights of CDSL Circular dated July-10-2025
DPs are advised to
note that as part of our continuing efforts to promote regulatory compliance
and investor awareness, all Depository Participants (DPs) are hereby advised to
note the prescribed limits on holding Sovereign Gold Bonds (SGBs) as outlined by
the Reserve Bank of India (RBI).
The maximum subscription limit per fiscal year (April to March) across primary
issuance and secondary market purchases is as follows:
- 4 kg for individuals,
- 4 kg for Hindu Undivided Family (HUF) and
- 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March).
In case of joint
holding, the limit applies to the first applicant only.
The annual ceiling will include bonds subscribed under different tranches
during initial issuance by the Government and those purchased from the
secondary market. The ceiling on investment will not include the holdings as
collateral by banks and other Financial Institutions.
Individual investors with subsequent change in residential status from resident
to non-resident may continue to hold SGB till early redemption/maturity.
It is essential that investors remain informed about these limits to ensure
compliance and avoid any unintentional breaches.
We therefore request you to take proactive measures to communicate these
regulatory limits to your clients through appropriate channels such as emails,
notifications on trading platforms, investor webinars, and FAQs.
Responsibility for adherence to these limits lies with the Investor.
Any breach or non-compliance with RBI guidelines will be attributed to that
respective investor. All DPs are therefore urged to take adequate preventive
and monitoring measures to ensure their clients’ SGB holdings remain within
permissible limits.
Your cooperation in this initiative will help safeguard investor interests
while ensuring adherence to regulatory mandates.
In case of any clarification or assistance required in the implementation of this circular, you may contact
Kaushik Jethwa - kau...@secmark.in / 9870210171
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