If they do 1 & 2, then - why will anyone buy it instead of an ETF?
There’s no benefit to stay for long or stay committed for yield that’s lower than Index.
If they clarify on taxation on early redemption - then the full mature redemption would be exempt - and if not so, again this is not any more attractive than ETFs.
That discount is barely Rs. 50. Why would people pay Rs. 700 premium in secondary market? Doesn’t make sense. Then also it should trade at IBJA levels only.
What’s the impact of budget 2024 on SGB?
Customs duty on Gold has reduced from 15% to 6% resulting in all SGBs trading in red today. There are SGBs up for final redemption in August and the year ahead where the reduced duty will help lower the maturity amount payouts for the Govt. In short, it is helpful for the Govt, but is a lossy affair for the SGB investors. The earlier SGBs have given enormous tax-free returns so far. Maybe Govt is trying to lower its payout burden.
How does the future of SGB look like? The short-term and long-term horizon for investors.
Were the customs duty factored in to gold prices when buying SGBs?