Understanding Sovereign Gold Bond rules for Indian Americans
As per FEMA (Foreign Exchange Management Act) regulations, Non-Resident Indians are NOT eligible to purchase Sovereign Gold Bonds, whether through primary market or secondary market (stock exchanges).
**Can NRIs in the USA invest in Sovereign Gold Bonds?**
Unfortunately, **No**. As per FEMA (Foreign Exchange Management Act) regulations, NRIs (Non-Resident Indians) are NOT eligible to invest in Sovereign Gold Bonds, whether through: - RBI's primary issues (now discontinued since Feb 2024 anyway) - Secondary market purchases on NSE/BSE
**Why this restriction exists:** SGBs are rupee-denominated government securities, and FEMA restricts NRI participation to manage foreign exchange flows and ensure the scheme benefits resident Indians.
**What if you already own SGBs?** If you purchased SGBs while you were a resident Indian and later became an NRI, you can continue to hold them until maturity. However, consult a tax professional for implications.
NRIs in USA CANNOT purchase SGBs under FEMA regulations
This applies to both primary market (RBI) and secondary market (exchanges)
Existing SGBs held before NRI status can be kept till maturity
Consider Gold ETFs listed on US exchanges as alternatives
FBAR and FATCA reporting may apply to Indian financial assets
GLD, IAU, and other gold ETFs available on US exchanges
No FEMA restrictions, USD denominated, liquid
Gold ETFs on NSE/BSE through NRI demat account
Allowed for NRIs, subject to repatriation rules
Purchase gold jewelry or coins in India
Customs regulations apply when bringing to USA
Some platforms allow NRI participation
Most platforms restrict NRIs, check individual terms
Government of India gold bonds
NOT allowed for NRIs under FEMA