How to buy Sovereign Gold Bond (SGB), trade them using Zerodha Kite, Groww, Paytm Money, and other platforms – A complete guide

Sovereign Gold Bond or SGB are securities denominated in grams of gold. People who don’t want to hold physical gold can opt for Sovereign Gold Bond as it is a substitute for holding physical gold. SGB is issued by the Reserve Bank of India (RBI) on behalf of the government. Interested investors can opt for SGB till June 23 and after that can look forward to a second tranche in September. SGBs can also be bought online in the secondary market if there is a seller available.

There are various platforms like Zerodha Kite, Groww, Paytm, and others that provide investors with this facility. Here is a step-by-step guide on how to invest in SBG through these platforms:

How to buy Sovereign Gold Bond (SGB), trade them using Zerodha Kite, Groww, Paytm Money, and other platforms - A complete guide

How to Buy Sovereign Gold Bond (SGB)

Sovereign Gold Bonds (SGBs) are a type of government-issued bond that is backed by gold. They are a popular investment option for people who want to invest in gold without having to worry about storing or insuring physical gold.

SGBs can be bought online through a variety of platforms, including Zerodha Kite, Groww, and Paytm Money. In this blog post, we will walk you through the steps on how to buy SGBs using these platforms.

Step 1: Open a Demat and Trading Account

The first step is to open a demat and trading account with a broker that offers SGBs. Some of the popular brokers that offer SGBs include Zerodha, Groww, and Paytm Money.

The process of opening a demat and trading account is fairly simple. You will need to provide some basic information, such as your name, address, and PAN number. You will also need to make a deposit, which is typically around Rs. 1000.

Step 2: Link Your Bank Account

Once you have opened a demat and trading account, you will need to link your bank account. This is so that you can fund your account and buy SGBs.

To link your bank account, you will need to provide your bank account number, IFSC code, and your name as it appears on your bank statement.

Step 3: Select a Platform to Buy SGBs

There are several platforms that you can use to buy SGBs. Some of the popular platforms include:

  • Zerodha Kite
  • Groww
  • Paytm Money
  • HDFC Securities
  • Kotak Securities

Each platform has its advantages and disadvantages. For example, Zerodha Kite is a popular platform for active traders, while Groww is a good platform for investors who are looking for a simple and easy-to-use platform.

Step 4: Buy SGBs

Once you have selected a platform, you can start buying SGBs. The process of buying SGBs is fairly simple. You will need to select the amount of SGBs that you want to buy and the issue price.

The issue price of SGBs is typically lower than the market price of gold. This is because the government offers a discount to investors who buy SGBs.

Step 5: Track Your SGBs

Once you have bought SGBs, you will be able to track them in your demat account. You can also track the performance of SGBs on the NSE and BSE websites.

Zerodha Kite 

Step 1: Visit the Zerodha Kite website or download the app 

Step 2: Log in or register yourself on the platform

Step 3: From the Dashboard, find the 5th tranche of an SGB expiring in August 2028, type ‘SGBAUG28V’

Step 4: To search for gold bonds on BSE, type BSE SGB followed by the month and year of expiry.

Step 5: Mention the quantity and click on Place order.


Step 1: Visit the Groww website or download the app 

Step 2: Log in or register yourself on the platform

Step 3: Search for the 5th tranche of an SGB expiring in August 2028, and type ‘SGBAUG28V’

Step 4: Mention the quantity and click on Place order

Another method is to visit

Paytm Money 

Step 1: Download Paytm Money  

Step 2: Go to the SGB landing page to view current, upcoming, and closed SGBs

Step 3: Select the SGB to view details

Step 4: On clicking apply, you are directed to the order page

Step 5: Enter the quantity you want to bid for and click ‘Apply’

How to trade SGB? 

Subscribers holding the SGBs in dematerialized form can sell them on the stock exchange if they need the amount before its maturity. The price of the SGBs in the stock market will reflect the price of gold and the demand and supply of gold bonds.

Investors can also buy Sovereign Gold Bond online via commercial banks’ website 

Step 1: Login into the preferred bank’s Internet banking account.

Step 2: Click on the “e-service” option and then choose the “Sovereign Gold Bond” option.

Step 3: Read attentively the “terms and conditions” put down by RBI and “Proceed”.

Step 4: Complete the registration form and select “Submit”.

Step 5: In the purchase form put the quantity of subscription and the nominee details.

Step 6: Now, after verifying the details click on the “Submit” option.

Read AlsoSovereign Gold Bond Scheme 2023-24: Subscription starts from June 19; Check price, interest rate, and other key details

Why buy Sovereign Gold Bond? 

Listed are some of the advantages of SGB: 

-Investors can earn an assured 2.50 percent interest rate on the issued price per annum.

-No applicable tax is deducted on SGBs while purchasing.

-The cost of SGBs is correlated with the cost of 999-purity gold.

-The bonds may be put up as collateral when requesting a loan.

-The bond has an eight-year term, however, it can be redeemed with a sovereign guarantee on the principal and interest after five years.

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