An Analytical Inquiry Of Sovereign Gold Bond Scheme In India - Policy Ingenuity Or Legislative Paradox
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AN ANALYTICAL INQUIRY OF SOVEREIGN GOLD BOND
SCHEME IN INDIA: POLICY INGENUITY OR
LEGISLATIVE PARADOX?
Tanuj Goyal & Sulagna Khan, Symbiosis Law School, Pune
ABSTRACT
Sovereign Gold Bond or SGB Scheme as crafted by India was a financial initiative known for its substantial ingenuity and was demarcated as an ambitious approach to combine macroeconomic solidity along with individual wealth generation through offering of sovereign-secured and interest-generating gold investment mechanisms. Regardless of the inherent positive elements of SGBs in the form of capital gains tax exemption upon maturity, predetermined 2. 5% annual interest and absolute dematerialization, SGBs operational complexity coupled with irregular issuance of tranches and excessively increasing redemption liabilities resulted in the abrupt termination in FY 2024-25. This paper critically unfolds the SGB trajectory, uncovering the evolution from commencement to termination with a specific focus on the associated volatility and fiscal restraints revealed in FY 2023-24.
Furthermore, it draws a comparative takeaways from global gold-related instruments including Turkey’s Gold Bonds and China’s Gold Accumulation Plans (GAPs) exhibiting the series of operations lessons that India could have incorporated for the sustenance of the SGB Scheme. The paper also tends to explore the viable post-SGB solutions including Gold ETFs and Digital Gold coupled with tangible resource tactics laying emphasis upon the essence of a hybrid initiative in wealth preservation and avoidance of substantial policy risks. Keywords: Ingenuity, Interest-generating, Capital gains tax exemption, Dematerialization, Hybrid Initiative
INTRODUCTION
“However beautiful the strategy, you should occasionally look at the results. ” – Winston Churchill India’s longstanding relation with gold is as much cultural as it is economical- a long-drawn legacy of protection and wealth preservation. In 2015, the SGB Scheme appeared as an ingenious approach to channelize household savings pertaining to gold within the formal economic structure, decreasing gold imports and rendering investors with a tax-efficacious alternate approach to physical gold. Backed through the Reserve Bank of India (RBI) as under the Government Securities Act, 2006, SGBs aimed at blending security, protected returns and inflation hedge factor, all made available without any challenge of storage purpose. 1 Yet, the very attributes that ensured SGBs ingenuity became entwined with the operational rigidity and fiscal constraints.
The eight-year redemption period, confined early-exit facilities, irregular issuance of tranches and operational hindrances upon redemption substantially diminished investor ease and flexibility. 2 SGB Scheme’s heavy reliance upon global gold prices indicated that price volatility is directly impactful upon redemption obligations and criteria thereby, increasingly pushing the borrowing cost of the government at a higher level. By FY 2024-25, an outstanding SGB liability of worth ₹1. 12 lakh crores came to be accumulated which acted as a driving factor for the untimely and abrupt discontinuation of SGB Scheme by the Union Government. This marked the halt of an instrument that was once considered as a pioneering model depicting India’s bold stance in the dynamic landscape of gold investment.
This paper unravels the prominent paradox evident in the case of SGB Scheme in India- how a financial instrument with global ingenuity and secure macroeconomic framework stumbled under operational constraints. Furthermore, the paper provides operational lessons that can be substantially obtained from comparable instruments globally and put forth the viable solutions for investors in the post-SGB era that has emerged. 1 Ruth V. Aguilera, Javier Capape, Javier Santiso, Sovereign Wealth Funds: A Strategic Governance View, Vol. 30, Academy of Management Perspectives, pp. 5-23, available at https://www. jstor. org/stable/43822134 (last accessed on 11/08/2025). 2 Hem Shweta Rathore, Investor’s Attitude Towards Physical Gold and Sovereign Gold Bonds, Vol. 6, ELK Asia Pacific Journals, pp. 56-69, available at https://papers. ssrn. com/sol3/papers. cfm?
abstract_id=3046646 (last accessed on 10/08/2025).
METHODOLOGY
With a focus on secondary sources, the research employs a doctrinal, descriptive, and analytical methodology. It looks at Ministry of Finance comments, budget documents, Reserve Bank of India (RBI) official publications, and Indian Bullion and Jewellers Association (IBJA) market data. The operational, structural, and economic aspects of SGB scheme are evaluated through an analysis of price movements, policy announcements, and subscription numbers for FY 2023-
24. International gold investment models provide comparative insights that allow for a critical
assessment of the scheme’s performance, difficulties, and financial discontinuance.
RESEARCH OBJECTIVE
This research paper’s goal is to critically analyze the SGB scheme’s lifecycle, from its launch to its termination, with a focus on budgetary difficulties and volatility seen in FY 2023-24. It seeks to pinpoint the operational, market-based, and structural elements that led to the scheme’s demise, extract comparative analysis from global gold investment models, and provide investors workable substitutes. In the post-SGB environment, the study aims to highlight methods for striking a balance between asset preservation, liquidity, and policy risk mitigation, such as hybrid investing options.
RESEARCH QUESTIONS
How did the interchange between policy ingenuity and operational constraints impact the SGB trajectory from its commencement to termination? • To what extent did redemption-associated liabilities aggravate the fiscal load within the SGB framework? • What essential operational lessons can be derived from comparative global gold investment instruments and how these could have been incorporated within India's gold investment realm? • In the post-SGB time, can hybrid mechanisms reconcile and pacify the trinity of investor security, stability and liquidity within the broader realm of gold investment?
CRITICAL ANALYSIS
From Amelioration to Discontinuation: The Rise and Downfall of SGBs As The Future of Gold Investment Landscape Like stocks, all SGBs are listed and available for sale on the secondary market, albeit liquidity could constitute a concern. SGBs offer 2. 5% annual interest on the issuance price and are correlated with the gold market price. 3 Since the bond’s issuance date, interest is paid once every six months, with the final interest and principal being deposited into the bank account upon maturity. You are permitted to invest up to the following amounts in a fiscal year, whether through primary issues or secondary market acquisitions, in accordance with the CDSL regulations4 :- Individuals and Hindu Undivided Families (HUF): 4 kg per financial year. Trusts and Similar government-nominated entities: 20 kg per financial year.
SGBs possess an eight-year maturity period, which may not be suitable for investors seeking short-term returns. Although an investor has the option to redeem early after five years from the issuance, they cannot access the funds before this predetermined time limit. 5 Depending on how long they are held, capital gains from selling SGBs in the secondary market before they mature are subject to taxes. Hence, the redemption period of SGBs makes the instrument less flexible for short-term investors. A resilient appeal: The Commencement of SGBs as a Popular Trend
Despite the liquidity issue, SGBs predominantly witnessed a surge in the number of investors. 3 Omkar Tilve, M. H. Uma, Sovereign Gold Bond (SGB): A Manufactured Foreign Exchange Crisis and Probable Way Out, Vol. 7, Asian Journal of Management, pp. 34-41, available at https://www. researchgate. net/publication/301508747_Sovereign_Gold_Bond_SGB_A_Manufactured_Foreign_ Exchange_Crisis_and_Probable_Way_Out (last accessed on 05/08/2025). 4 Amar G. Satijani, Dr. Jaspal Gidwani, Avinash Sahu, Gold Saving Scheme: An unusal way of investing in Gold thrust on Sovereign Gold Bond Scheme (SGBs), Vol. 5, Journal of Emerging Technologies and Innovative Research (JETIR), available at https://www. jetir. org/papers/JETIR1801135. pdf (last accessed on 08/08/2025).
5 Dixita Barai, An Analysis of the Millennial Generation;s Understanding of the Sovereign Gold Bond, A Key Long-Term Gold Instrument for the Indian Economy, Vol. 16, International Journal of Scientific Research in Engineering and Management, pp. 1-21, available at https://www. researchgate. net/publication/362224919_An_Analysis_of_the_Millennial_Generation's_Understan ding_of_the_Sovereign_Gold_Bond_A_Key_Long-Term_Gold_Instrument_for_the_Indian_Economy (last accessed on 09/08/2025).
The SGB’s third tranche for the fiscal year 2023-24 was valued at INR 7,500 crores and 30% of all subscriptions since the SGB’s inception were made in 2024 itself. 6 The SGBs are linked to the market price of gold; however, they offer compounding benefits to the investor as gold bonds offer 275 basis points higher returns when compared to physical gold. 7 Most importantly, SGBs are deemed as government securities as under the Government Securities Act, 20068 and are issued by the RBI in periodic tranches; hence, investors find them as a safer and more reliable instrument. One of the most crucial factors behind the rising demand for SGBs is that gold acts as an inflation hedge. 9 Gold has historically held its value even during periods of high inflation.
This is significant because central banks frequently print additional money in response to rising inflation which further devalues the currency. On the contrary, because of its finite supply, gold is a real asset that the investors can rely upon to back their capital throughout time. Demand for gold tends to increase because investors gravitate towards it during uncertain economic times. This, along with the fact that gold has always been emotionally, financially, and culturally valued in India,10 has consequently resulted in a constant demand for goldrelated market investments. Sovereign Gold Bond (SGB) Scheme Price Trajectory (FY 2023-24): Analysis of Potential Threats Outweighing SGB’s Dominance Upon effectuation of the subscription process, the concerned investors are rendered a Holding Certificate which acts as the official evidence of investment.
11 The SGB redemption price is 6 Ankit Sanjay Dubey, Aakash Kailashnath Verma, Jignesh Vidani, A Study on Awareness of Sovereign Gold Bonds (SGBs), Vol. 2, International Journal of Sustainable Social Science, pp. 25-41, available at https://jurnalinternasional. com/index. php/ijsss/article/view/97/82 (last accessed on 10/08/2025). 7 Subodh Kumar, A Case Study on Sovereign Gold Bond Sold through Banks: Investor Protection Issues, Vol. 11, Journal Global Values, pp. 207-210, available at https://www. researchgate. net/publication/354436162_A_Case_Study_on_Sovereign_Gold_Bond_Sold_through _Banks_Investor_Protection_Issues (last accessed on 09/08/2025).
8 Vanaja. P., A Study on SGB (Sovereign Gold Bonds) vs Gold Investment- Perception & Preference of
Consumers in Telangana, Vol. 13, International Journal of Current Science, pp. 25-33, available at https://rjpn. org/ijcspub/papers/IJCSP23B1481. pdf (last accessed on 11/08/2025). 9 Sudindra vr, Ganjendra Naidu Jatty, Is Sovereign Gold Bond Better Than Other Gold Investment? , Vol. 6, International Journal of Management Studies, pp. 2231-2528, available at https://www. researchgate. net/publication/332794271_Is_Sovereign_Gold_Bond_is_Better_Than_Other_Gold_I nvestment (last accessed on 07/08/2025). 10 Sathish Pachiyappan, Chandrakala G, Arya Mishra, Keerthana K, Samiksha Kumari, Tanvi Verma, Golden Insights: Analyzing the Influence of Economic Indicators on Sovereign Gold Bond Performance in India, Vol. 6, International Research Journal of Multidisciplinary Scope (IRJMS), pp. 564-576, available at https://www. irjms.
com/journal/golden-insights-analyzing-the-influence-of-economic-indicators-on-sovereigngold-bond-performance-in-india/ (last accessed on 11/08/2025). 11 Rishabh Gupta, Sovereign Gold Bond- A Financial Innvoation in India, Vol. 5, International Journal of Economics and Management Studies, pp. 21-23, available at
dependent upon the average closing price of 999-purity gold spanning for three business days prior the redemption date as published via the Indian Bullion and Jewellers Association
(IBJA).12
Tranche Concerned Issuance Date SGB Price per Gram Series No. 1 2023, June ₹5,926 Series No. 2 2023, September ₹5,923 Series No. 3 2023, December ₹6,199 Series No. 4 2024, February ₹6,263 Table 1: Financial Year 2023-24’s series prices FY 2023-24’s Contribution to the Discontinuation of SGB:- The price trajectory in FY 2023-24 exhibits critical dimensions as to why SGB as a scheme regardless of the systemic ingenuity still experienced discontinuation. Despite modest gains in prices from ₹5,926 to ₹6,263 by February 2024, a series of challenges have diminished the scheme’s efficacy for the government and its value for specified investor sectors. The irregularities demonstrate both the volatility of SGB returns with respect to short-term price correction and the pressure so placed on redemption arrangement.
13 Investors who enter at peak series price such as that in December 2023 at ₹6,199 or in February at ₹6,263 encountered the effect of compressed returns if global gold prices prior their maturity were to be softened or in cases of prior redemption window. This acted as a pressurizing factor for the government as https://www. researchgate. net/publication/331172286_Sovereign_Gold_Bond_- _A_Financial_Innovation_in_India (last accessed on 06/08/2025). 12 Dr. Keerthi Pandian, A study on the awareness of sovereign gold bond scheme, Vol. 5, IJRAR International Journal of Research and Analytical Reviews, pp. 24-29, available at https://ijrar. org/papers/IJRAR190E011. pdf (last accessed on 11/08/2025). 13 Ashish Rukhaiyar, Sovereign Gold Bonds, a substitute for physical gold, The Hindu (last accessed on 12/08/2025, 4:30 p. m. ), https://www. thehindu.
com/business/Industry/sovereign-gold-bonds-a-substitute-forphysical-gold/article31603727. ece .
this indicated an elevated risk of paying redemption prices over initial subscription level together with the predetermined 2. 5% annual interest. Furthermore, the incongruity between price trajectory and investor liquidity presumptions often lead to trading below the RBI redemption price. The excessive borrowing cost associated with SGB has been cited as the primary ground for discontinuation of the Scheme. Mr. Ajay Seth, Economic Affairs Secretary has stated that SGB has emerged to be a relatively costlier method of borrowing for the government as a result of which regardless ₹18,500 crore being allocated for SGBs in FY25 Budget Plan, no new tranches have been published.
14 The challenges posed by FY 2023-24 have thus, been pointed out to sum up the adverse impact so created consequently ultimately resulting in the discontinuation of SGB in India:- § Possible High-priced entry risks: Investors who entered at high-priced series as that in Series No. 3 and Series No. 4 were at a risky phase as if global gold price declined, their returns could constrict. § Potential Volatility and Lock-In Restraint: The declination from ₹5,926 in June, 2023 to ₹5,923 in September, 2023 demonstrate the sensitivity in terms of short-term price corrections and the fact that there exists a 5-year lock-in period further constrains profitrealization on a short-term basis.
§ Reliance upon Global Developments: The increase to ₹6,263 within February 2024 were a consequence of geopolitical pressures in West Asian region as well as sharp rise in central bank gold purchase all across the globe which substantially contributed to higher gold demand globally. As the potential challenges of SGB Scheme FY 2023-24 are pointed out, it is also quintessential to trace the underlying impediment in the general implementation of SGB Scheme in India. Uncovering the Inescapable Cracks: Structural and Systematic Hindrances in the Implementation of SGBs in India 14 Aanchal M. , Why the government could discontinue the sovereign gold bond scheme, The Indian Express (last accessed on 11/08/2025, 8:30 a. m. ), https://indianexpress. com/article/explained/explainedeconomics/government-sovereign-gold-scheme-sgb-9729444/ .
SGBs in India encountered various structural as well as market-based hindrances that adversely impacted their effective implementation. Firstly, the returns of SGBs were highly reliant upon gold price volatility at the global level. 15 The FY 2023-24 tranches demonstrated the price dips thereby, indicating that the investors who enter at high price point stages may encounter returns that are compressed if the global gold prices reduce prior or near redemption. Secondly, the considerably long lock-in period of eight years with prior exit being allowable only upon completion of the fifth year essentially constrained liquidity as a result of which the secondary market was compelled to trade below the RBI redemption price, creating a significant deterrence for the short term-investors.
16 Thirdly, operational complications lingered specifically upon dematerialization as the investors are required to navigate and communicate through several checkpoints such as the banks, NDSL and/or CDSL- creating unnecessary delay in redemption procedure. 17 Fourthly, the irregular issuance of tranches impeded organized investment which also impacted the investor consciousness and taxation lucidity. 18 What went behind the downfall of SGB Scheme in India? :- The Union Government prioritises debt reduction and bolstering of the nation’s economy. By the fiscal year 2025 and subsequent years, it hopes to reduce the Debt-to-GDP ratio from 58. 2% in Fiscal Year 2024 to 56. 8% in 2025 and so on. 19 However, the government’s increasing liabilities as a result of the SGB Scheme’s high borrowing costs are mostly to blame for its termination.
Since November 2025 until February 2024, the Government has issued SGBs totalling Rs. 72,000 crores. 20 SGBs worth 1,32,000 kg of gold are still held by investors even after previous 15 Tonmoy Choudhury, Harald Kinateder, Biwesh Neupane, Gold, Bonds, and Epidemics: A safe haven study, Vol. 7, Finance and Research Letters, pp. 17-29, available at https://www. researchgate. net/publication/360633031_Gold_Bonds_and_Epidemics_A_safe_haven_study (last accessed on 12/08/2025). 16 Kriti, MoF notifies Sovereign Gold Bond Scheme 2023-24; distinct Series will be indicated on Bond issues, SCC Online (last accessed on 05/08/2025, 11:00 a. m. ), https://www. scconline. com/blog/post/2023/06/16/mofissues-sovereign-gold-bond-scheme-2023-24/.
17 Supra Note 12, at 7.
18 T.C.A. Sharad Raghavan, A bond that’s not worth its weight in gold, The Hindu (last accessed on 11/08/2025, 11:30 a.m.), https://www.thehindu.com/business/a-bond-thats-not-worth-its-weight-in-gold/article26561675.ece. 19 Priyadarshini Singh, Why Modi Government Discontinued Sovereign Gold Bond (SGB) Scheme? RBI Issued Last Bonds In Feb 2023, Times Now (Last accessed on 09/08/2025, 7:30 p.m.), https://www.timesnownews.com/business-economy/industry/why-modi-government-discontinued-sovereigngold-bond-sgb-scheme-rbi-issued-last-bonds-in-feb-2023-article-117916548 . 20 Suresh P. Iyengar, Sovereign gold bonds hog limelight in secondary market, The Hindu Business Line (last accessed on 10/08/2025, 6:30 p.m.), https://www.thehindubusinessline.com/markets/gold/sovereign-gold-bondshog-limelight-in-secondary-market/article69371867.ece .
tranches were redeemed. 21 This amounts to a huge liability for the Government of Rs. 1. 12 lakh crore at current market prices. The Government is especially worried that its redemption liability may significantly surpass current projections if gold prices keep rising. The final batch of SGBs will mature in 2032 due to their eight-year lifespan, which will put more financial strain on the system. The pressure on the Government can be seen from the reduction in the gold import duty from 15% to 6% in the 2025 budget signalling the shift towards alternative gold-related investments rather than SGBs. 22 The Unpredicted Paradox: A Comparative Analysis of SGBs with Other Prevalent Gold Models Across the Globe India’s SGBs demonstrate an unparalleled occasion wherein a nation had generated a distinctive gold-related sovereign instrument that was macro-economically beneficial. Through the 2.
5% annual interest rate together with capital gain tax exemption upon maturity and even a complete dematerialised mechanism, SGB attempted at combining investment returns together with national benefits. 23 SGBs rather than relying upon conventional accounts for gold savings or ETFs, aimed at modifying household gold saving practices. This was truly unprecedented and unparalleled as no other country including top gold-consuming nations had sought to institute such model at such grand scale. Yet, the SGB scheme stumbled. Despite the global uniqueness, SGBs faltered and if analysed there are certain operational lessons that can be incorporated from various models prevalent in the global gold investment market that may act as guiding factors to balance ingenuity with operational flexibility.
For instance, Gold Bonds and Gold-Backed Lease Certificates are operated in Turkey which are government mechanisms connected with gold value, however unlike SGBs, they do not possess a distinct interest rate but their essence lies in simple redemption process through local
21 Ibid.
22 Subodh Kumar, A Case Study on Sovereign Gold Bond Sold through Banks: Investor Protection Issues, Vol. 11, Journal Global Values, pp. 34-36, available at https://www.researchgate.net/profile/Subodh-Kumar- 60/publication/354436162_A_Case_Study_on_Sovereign_Gold_Bond_Sold_through_Banks_Investor_Protectio n_Issues/links/61384da1637a811d6d584900/A-Case-Study-on-Sovereign-Gold-Bond-Sold-through-Banks- Investor-Protection-Issues.pdf (last accessed on 11/08/2025). 23 Anu Anna Ninan, Sovereign Gold Bond Scheme- An Alternative to Physical Gold Investment in Kerala, Vol. 3, International Journal of Management Studies, pp. 78-89, available at https://www.researchgate.net/publication/326632422_Sovereign_Gold_Bond_Scheme_- _An_Alternative_to_Physical_Gold_Investment_in_Kerala (last accessed on 11/08/2025).
branches and regular issuance of tranches which SGBs prominently lacked. 24 China’s Gold Accumulation Plans or GAPs permits individuals to invest small amounts on a regular basis and even redeem the same easily without operational complexity. This model comes out as a pioneering model that is marked by micro-purchase ease and flexible liquidity unlike that of SGBs. 25 Operational complications in handling the dematerialised structure, irregular issuance of tranches together with the persistent volatility destroyed the consistent momentum of SGB resulting in its discontinuation. 26 The Indian experience underscores that policy ingenuity alone is inadequate as it has to be in sync with streamlining of the purpose of the model with the realtime benefits and ease of the investors as well as the government in place.
Failing to meet operational easement and market liquidity requirements together with multifarious elements as pointed rendered to the SGBs constituting only as a transient chapter in the gold investment history.
CONCLUSION & WAY AHEAD
The discontinuation of SGBs highlights the termination of an ingenuous model that aimed at combining financial returns along with macroeconomic utility. The SGB Scheme although was extraordinary at offering protection, tax efficacy and inflation-hedging capability, however, SGBs’ operational inflexibility, excessive redemption liability and irregular issuance of tranches substantially contributed to its untimely conclusion. 27 24 Gaye Gencer, Zafer Musoglu, The safe haven property of Gold in Turkish Financial Markets: An investigation of the Global Financial Crisis, Vol. 28, Journal Review of Social, Economic and Administrative Studies, pp. 75- 89, available at https://www. researchgate. net/publication/317689351_The_Safe_Haven_Property_of_Gold_in_Turkish_Financi al_Markets_An_Investigation_of_the_Global_Financial_Crisis (last accessed on 11/08/2025).
25 Sijie Liu, Yong Geng, Ziyan Gao, Jinze Li, Shijiang Xiao, Uncovering the key features of gold flows and stocks in China, Vol. 82, Resources Policy, pp. 134-145, available at https://www. sciencedirect. com/science/article/abs/pii/S0301420723002957 (last accessed on 12/08/2025). 26 Abhinav Kaul, SGBs discontinued in Budget 2025: What’s the best way to invest in gold now? , The Money Control (last accessed on 08/08/2025, 5:30 p. m. ), https://www. moneycontrol. com/news/business/personalfinance/sgbs-discontinued-in-budget-2025-what-s-the-best-way-to-invest-in-gold-now-12930675. html. 27 Jalpa Thakkar, Sheenam Gogia, Vatsala Manjunath, An empirical study on Gold investment rage among the Professionals- A Comparative Analysis of Gold ETF, EGold and Gold Funds, ASM’s International E-Journal of Ongoing Research in Management and IT, pp. 37-55, available at https://www. researchgate.
net/publication/361305342_AN_EMPIRICAL_STUDY_ON_GOLD_INVESTMENT
_RAGE_AMONG_THE_PROFESSIONALS_-
_A_COMPARATIVE_ANALYSIS_OF_GOLD_ETF_EGOLD_AND_GOLD_FUNDS (last accessed on 11/08/2025).
With the cessation of SGBs, the investors ought to reorganize their gold-associated tactical approaches so as to stabilize security with liquidity as well as return possibilities. Gold Exchange Traded Funds or ETFs have appeared as the most instantaneous replacement rendering higher liquidity and transparent pricing mechanism although lacking the interest element. 28 However, those investors who search for flexibility in immediate conversion and size of ticket, Digital Gold provides unprecedented access though with the vigilance regarding regulatory lacunae. 29 Those investors who wish to anchor long-term preservation of wealth, physical gold and even real estate are great options that merge tangibility along with a capital appreciation capacity. 30 Investors who are substantially income-focused may proceed with gold mining stocks or REITs that accept greater volatility.
31 The wider lesson that the SGB experience unfolded is that no sole product can entirely embody the perfect combination of safety and returns that SGBs aimed at offering. Moving forward, a hybrid initiative that predominantly diversifies while merging regulated gold mechanisms, income-generating spheres as well as tangible resources will be central and significant as this will substantially permit the investors to alleviate grave policy risk thereby, crucially harnessing the historic appeal of gold in both the financial and cultural ethos in India. In our opinion, the SGB experience, does not merely constitute a tale of financial debacle but a stark reminder that even the most enterprising fiscal instruments cannot surpass the boundaries of institutional flow and public perspective.
Its subsequent discontinuation unravels a quintessential paradox of modern policy formulation- that fiscal ingenuity must cohabit with social perceptions and expectations. As authors, we believe that the Scheme’s ingenuity underlies in the discourse it discovered: the acknowledgement that policy cannot solely chase macroeconomic targets but must also resonate with the innate rhythm of investors. The experiment of India with SGBs may have been temporarily ceased, but it leaves an indelibly
28 Girish Joshi, Ranjan Kumar Dash, Exchange-traded funds and the future of passive investments: a
bibliometric review and future research agenda, Vol.10, Future Business Journal, pp. 134-146, available at https://fbj.springeropen.com/articles/10.1186/s43093-024-00306-8 (last accessed on 12/08/2025).
29 S Shiva Shankari, A Study and Creating Awareness on Investment in Digital Gold, Vol. 10, JRAR
International Journal of Research and Analytical Reviews, pp. 134-142, available at https://ijrar.org/papers/IJRAR1CYP006.pdf (last accessed on 11/08/2025). 30 Preeti Motiani, Will government bring alternative to SGB scheme in Budget 2025? Here is what experts say, The Economic Times (last accessed on 10/08/2025, 5:30 p.m.), https://economictimes.indiatimes.com/wealth/invest/will-govt-bring-alternative-to-sgb-scheme-in-budget-2025here-is-what-experts-say/articleshow/117622968.cms?from=mdr .
31 Alexandre Jeanneret, The Dynamcis of Sovereign Credit Risk, Vol. 50, The Journal of Financial and
Quantitative Analysis, pp. 963-985, available at https://www.jstor.org/stable/43862283 (last accessed on 11/08/2025).
intellectual framework for future fiscal instruments- one that promotes flexibility, lucidity and a tolerant perspective of risk over mere constitutional excellence.
REFERENCE
Research Papers:- § Ruth V. Aguilera, Javier Capape, Javier Santiso, Sovereign Wealth Funds: A Strategic Governance View, Vol. 30, Academy of Management Perspectives, pp. 5-23, available at https://www.jstor.org/stable/43822134 (last accessed on 11/08/2025). § Jalpa Thakkar, Sheenam Gogia, Vatsala Manjunath, An empirical study on Gold investment rage among the Professionals- A Comparative Analysis of Gold ETF, EGold and Gold Funds, ASM’s International E-Journal of Ongoing Research in Management and
IT,
pp. 37-55, available at https://www.researchgate.net/publication/361305342_AN_EMPIRICAL_STUDY_O
N_GOLD_INVESTMENT_RAGE_AMONG_THE_PROFESSIONALS_-
_A_COMPARATIVE_ANALYSIS_OF_GOLD_ETF_EGOLD_AND_GOLD_FUND
S (last accessed on 11/08/2025).
§ Amar G. Satijani, Dr. Jaspal Gidwani, Avinash Sahu, Gold Saving Scheme: An unusal way of investing in Gold thrust on Sovereign Gold Bond Scheme (SGBs), Vol. 5, Journal of Emerging Technologies and Innovative Research (JETIR), available at https://www. jetir. org/papers/JETIR1801135. pdf (last accessed on 08/08/2025). § Dixita Barai, An Analysis of the Millennial Generation;s Understanding of the Sovereign Gold Bond, A Key Long-Term Gold Instrument for the Indian Economy, Vol. 16, International Journal of Scientific Research in Engineering and Management, pp. 1-21, available at https://www. researchgate. net/publication/362224919_An_Analysis_of_the_Millennial _Generation's_Understanding_of_the_Sovereign_Gold_Bond_A_Key_Long- Term_Gold_Instrument_for_the_Indian_Economy (last accessed on 09/08/2025).
§ Ankit Sanjay Dubey, Aakash Kailashnath Verma, Jignesh Vidani, A Study on Awareness of Sovereign Gold Bonds (SGBs), Vol. 2, International Journal of Sustainable Social Science, pp. 25-41, available at https://jurnalinternasional. com/index. php/ijsss/article/view/97/82 (last accessed on 10/08/2025).
§ Subodh Kumar, A Case Study on Sovereign Gold Bond Sold through Banks: Investor Protection Issues, Vol. 11, Journal Global Values, pp. 207-210, available at https://www. researchgate. net/publication/354436162_A_Case_Study_on_Sovereign_ Gold_Bond_Sold_through_Banks_Investor_Protection_Issues (last accessed on 09/08/2025). § Vanaja. P. , A Study on SGB (Sovereign Gold Bonds) vs Gold Investment- Perception & Preference of Consumers in Telangana, Vol. 13, International Journal of Current Science, pp. 25-33, available at https://rjpn. org/ijcspub/papers/IJCSP23B1481. pdf (last accessed on 11/08/2025). § Sudindra vr, Ganjendra Naidu Jatty, Is Sovereign Gold Bond Better Than Other Gold Investment? , Vol. 6, International Journal of Management Studies, pp. 2231-2528, available at https://www. researchgate.
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