Can you transfer Sovereign Gold Bond to Demat account where you are Secondary Holder

I purchased Sovereign Gold Bond on Zerodha in Jul 2016. At this time my Demat account was with Citibank (NSDL) and the Gold Bond was deposited there.

I later opened a Demat account with Zerodha (CDSL) and linked my trading account with it. I now wish to close my old Citibank Demat account, which means I have to transfer all my holdings out.

I have successfully transferred all my equity shares to the Zerodha demat using offline Delivery Instruction Slip.

However, the transfer of the Sovereign Gold Bond failed. The explanation given by Zerodha and Citibank was that Gold Bond cannot be transferred from NSDL to CDSL.

My father has a Demat account with ICICI and Yes Bank (Need to confirm, but I think 1 or both of these is with NSDL).

I want to know that if I get myself added as a Secondary holder in his Demat account, will I be able to transfer the Gold Bond to that account

Yes, there are certain restrictions imposed by RBI wherein they’re currently not allowing inter-depository transfers for Sovereign Gold Bonds.

However, transfer between same depositories is allowed. If you’re initiating a closure-cum-transfer, I’m afraid, shares can’t move into your dad’s NSDL account, since in all such closure-cum-transfers case the beneficiary has to be the same. You’ll either have to sell these units (if your broker is allowing you to) and then close the account or the DP can mark your account as ‘to-be-closed’ to avoid incurring AMC charges.

If you’re just initiating a transfer, you can transfer shares to your dad’s account, but there are charges for doing so. You’ll have to check with Citi about the costs of such transfer.

Another option you have is to rematerialize the gold bonds and hold them in physical form.


So I heard back from Citibank. They said I can transfer the Gold Bond to an NSDL account where I’m a joint holder…

But, ICICI says you can’t be added as a joint holder in an existing NSDL account.

We would have to open a NEW demat account as joint holders.

Jai Ho arbitrary rules and regulations.