A Step-by-Step Guide on buying Sovereign Gold Bond Scheme (SGB) via the Star Back Office


Sovereign Gold Bonds scheme (SGBs) are financial instruments issued by the government of India, providing investors with a secure and convenient way to invest in gold without the need for physical ownership. These bonds offer a unique combination of benefits, including market-based returns, a 2.5 percent interest rate, and capital appreciation, making them an attractive option for those looking to diversify their investment portfolios. SGBs are denominated in grams of gold and are backed by the government, offering a reliable and stable avenue for investing in gold. Investors can purchase SGBs through various payment options, such as cash, cheques, demand drafts, or electronic fund transfers, and they also have the flexibility to redeem the bonds in Indian Rupees on maturity. With the upcoming series of Sovereign Gold Bonds, investors have the opportunity to build a secure financial future while benefiting from the stability and potential returns associated with gold investments.

Sovereign Gold Bonds schemes (SGBs) are a popular investment option for those looking to invest in gold as a hedge against inflation and market uncertainties.

Buy SGBs via The Star Back Office

Here’s a step-by-step guide on how to buy SGBs:

Step 1. Access Samco Star Platform

Begin by accessing the Samco Star platform. Head to Samco Star and log in to your account.

Step 2: Navigate to the Investment Section and Select SGBs

Move to the Investment Section. Locate the “IPO/ OFS/ SGB” tab situated in the main menu of the platform. Within the options available, click on the one specifically related to Sovereign Gold Bonds to proceed.

Step 3: Apply for the SGB

Having selected your preferred sovereign gold bonds, click on the ‘Buy’ button. This initiates the application process for the chosen offering.

Step 4: Add Quantity 

Enter the preferred quantity for purchasing.

Step 5: Generate and Submit OTP

Security is a priority, and Samco ensures a secure transaction. To proceed, you’ll need to generate a One-Time Password (OTP). Click on the ‘Generate OTP’ option. The OTP is sent to your registered mobile number. Enter the OTP in the designated space and submit. This additional layer of authentication safeguards your transaction.

Step 6: Confirmation and Success

With the OTP submitted, your order is ready for processing. Samco’s user-friendly interface ensures a seamless experience. Once submitted, you’ll receive a confirmation message indicating that your order has been placed successfully.

Additionally, you can invest in SGBs through your Demat account. To do this, fill out a similar application form and apply with the help of your broker. You can also buy SGBs on the primary market through the Stock Holding Corporation. SGBs are a low-risk alternative for investing in gold, as they are government securities denominated in grams of gold and redeemable in cash at maturity. The redemption price is based on the three-day simple average of gold prices, published by the India Bullion and Jewelers Association Limited.


Sovereign Gold Bonds scheme (SGBs) offer investors a practical and reliable channel to invest in gold, providing safety advantages, a fixed income, capital appreciation, and tax benefits. However, potential investors should carefully consider price fluctuations, investment duration, and liquidity aspects before committing to these bonds. SGBs can be beneficial for diversifying an investment portfolio, combining the advantages of both gold and fixed-income investments. The upcoming series of the Sovereign Gold Bonds scheme represents a valuable investment opportunity for those seeking a more secure financial future. It’s essential to weigh the benefits and risks of Sovereign Gold Bonds schemes and consider how they fit into an overall investment strategy before making a decision. Consulting a financial advisor is recommended to make an informed investment decision.  

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