How to Transfer Sovereign Gold Bond (SGB) to Another Person: Step-by-Step Guide

October 8, 2026

Sovereign Gold Bonds (SGBs) are a highly secure and popular way to invest in gold while earning a steady interest income. Many investors buy these bonds with the intention of holding them until maturity, but financial plans can change. If you want to gift or sell your bonds, you can legally transfer them to another eligible person before the official maturity date.

The transfer process depends entirely on how you hold the bonds. SGBs held in physical form (as Stock Certificates or under a Bond Ledger Account) must be transferred offline through the original Receiving Office. If your bonds are in digital form, you can transfer them electronically through online off-market transactions or by submitting physical instruction slips to your depository participant. Under the Government Securities Act, 2006, and Government Securities Regulations, 2007, you are permitted to transfer your entire SGB holding or even make a partial transfer of a portion of your bonds.

Eligibility and Prerequisites for SGB Transfer

Before initiating an SGB transfer, both the transferor (the person giving the bonds) and the transferee (the person receiving them) must meet specific legal and administrative requirements:

Residential Status: The transferee must be a ‘Person resident in India’ as defined under the Foreign Exchange Management Act, 1999 (FEMA).
Eligible Entities: SGBs can only be transferred to individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions.
Demat Requirements: For digital SGB transfers, both parties must have active Demat accounts.
Non-Resident Inheritance: If a non-resident inherits these bonds, they are permitted to hold them until maturity, but the interest and maturity proceeds will be strictly non-repatriable.

How to Transfer Physical SGBs (Form F Process)

If you hold your SGBs in physical form or as a Bond Ledger Account (BLA), the transfer must be executed offline. This requires submitting physical paperwork to the original Receiving Office (the bank, post office, or institution where you first bought the bonds).

Obtain Form F (the official Instrument of Transfer) from the Reserve Bank of India (RBI) website or directly from your designated physical Receiving Office.
Carefully fill in the required details, including the SGB certificate number, the exact quantity of units (in grams) being transferred, and the personal details of both the transferor and transferee.
Both parties must sign the completed form. This signing must take place in the presence of two independent, distinct witnesses.
The witnesses must sign the form and record their full names, occupations, and physical addresses.
Submit the completed Form F, the original Certificate of Holding (CoH), and the required KYC documents of both parties to the Receiving Office.
The Receiving Office will verify the details and update the ownership records on the RBI’s E-Kuber portal. Note that the exact turnaround time for this portal update is not legally codified.
Once the details are verified and updated, the Receiving Office will issue new Certificates of Holding to both parties (especially if a partial transfer was made).

Documents Required for Physical SGB Transfer

To avoid rejection at the Receiving Office, ensure you have the following checklist ready:

Completed and signed Form F with witness signatures and details.
Original Certificate of Holding (CoH).
Self-attested copies of PAN Card and Aadhaar Card for both the transferor and the transferee.
The transferee’s bank details and a cancelled cheque to register future interest and maturity payouts.

How to Transfer Demat SGBs Online and Offline

If your Sovereign Gold Bonds are held electronically in a demat account, you can transfer them to another person’s demat account via an off-market transfer. This can be done online using depository portals or offline using paper instructions.

Method 1: Online Off-Market Transfer via CDSL Easiest

Register for the CDSL Easiest portal if you have not already done so.
Log in and add the transferee’s demat account details as a ‘Trusted Account’ within the portal.
Select the option for an off-market transfer.
Enter the exact International Securities Identification Number (ISIN) corresponding to your SGB series, along with the quantity (number of grams) you wish to transfer.
Select the appropriate reason for transfer (such as a gift).
Authenticate the transaction using your CDSL TPIN and the one-time password (OTP) sent to your registered mobile number and email.

Method 2: Offline Demat Transfer Using Delivery Instruction Slip (DIS)

Obtain a physical Delivery Instruction Slip (DIS) booklet from your stockbroker or Depository Participant (DP).
Fill out the DIS, specifying the SGB ISIN, the quantity of units to be transferred, and the target DP details of the recipient.
Sign the DIS exactly as your signature is recorded with your broker.
Submit the physical DIS to your broker’s branch office for manual verification and processing.
If requested, provide an attested copy of the transferee’s Client Master Report (CMR) to complete the transaction.

Transfer Fees, Stamp Duty, and Processing Charges

While the process is straightforward, there are some administrative costs associated with transferring SGBs:

Demat Transfer Fees: Depository participants charge a transaction fee for off-market demat transfers. This fee typically ranges from ₹15 to ₹25 plus 18% GST per ISIN.
Demat Account Closure: A demat account closure-cum-transfer to another demat account belonging to the exact same holder is typically free.
Stamp Duty: Stamp duty under the Indian Stamp Act is applicable to off-market transfers and must be paid by the transferor.
Physical Transfer Fees: Financial institutions and original Receiving Offices generally do not charge any processing fee for submitting a physical Form F.

Tax Implications on SGB Transfers

Understanding the tax rules is critical, as transferring or gifting SGBs alters the tax benefits dramatically under updated regulations:

Loss of Redemption Exemption: Complete capital gains tax exemption upon final maturity or redemption is strictly restricted to the original subscribers of the SGB.
Transferee Liability: Any transferee who acquires SGBs via secondary market purchases, off-market transfers, or as a gift will face capital gains tax liabilities when the bonds are redeemed or reach maturity. Gifting does not bypass these tax rules.
Interest Taxation: The fixed interest rate of 2.5% per annum on the nominal value remains fully taxable under ‘Income from Other Sources’ for all bondholders, including the original subscriber and any subsequent transferee.

Key Restrictions and Features to Keep in Mind

Before you execute your SGB transfer, keep these operational limits and administrative rules in mind:

No Fractional Transfers: SGBs are issued in multiples of 1 gram. Transfers must be made in whole numbers representing grams; fractional transfers of a gram are not allowed.
Premature Redemption: Premature redemption through the RBI is only permitted after completing 5 years from the specific SGB issue date.
Inter-Depository Complexities: Initiating an inter-depository off-market transfer (such as NSDL to CDSL) for third-party gifts may require physical forms like Annexure-U and take longer to verify.
Demat Conversion: If you hold physical SGBs in BLA form, you can convert them into demat form by submitting a dematerialization request to your Receiving Office before initiating any digital transfer.
Pledging Benefits: Once the transfer is complete, the transferee enjoys all digital holding security benefits and can also pledge the SGBs as collateral to secure bank loans.
Redemption Value: The final maturity payout is based on the simple average of the closing gold prices of 999 purity published by the India Bullion and Jewellers Association Limited (IBJA) for the preceding three business days.

Official Sources

Frequently Asked Questions

Can I gift SGBs to my children or spouse?

Yes. You can gift SGBs to your immediate family members. For physical bonds, you must execute Form F offline. For demat holdings, you can complete an online off-market transfer using the CDSL Easiest portal or submit a physical Delivery Instruction Slip (DIS) to your broker.

Will the person who receives my gifted SGB get tax-free maturity?

No. Under the updated tax rules, the absolute exemption on capital gains tax at redemption is restricted strictly to the original subscribers. The recipient of your gifted SGB will be liable to pay capital gains tax upon maturity.

What happens to SGB interest after it is transferred?

Once the transfer of ownership is officially recorded in the E-Kuber portal or the depository records, all future semi-annual interest payments of 2.5% per annum will be credited directly to the transferee’s registered bank account.

Can I transfer a fraction of a gram of SGB?

No. Sovereign Gold Bonds are issued and held in units of whole grams. Consequently, transfers must always be made in whole numbers representing grams.

Conclusion

Transferring a Sovereign Gold Bond is a highly practical way to liquidate your holdings or pass wealth down to your family. Whether you choose the offline Form F route for physical certificates or the digital off-market transfer through your demat account, the process is well-structured under Indian law. Just keep in mind that the recipient of a transferred bond will lose the tax-free maturity status reserved for original subscribers, making it important to calculate potential tax obligations before initiating the transfer.