New Delhi, Feb. 2 -- Sovereign Gold Bonds (SGBs) of different tenures witnessed a decline of up to 10% on the NSE on Monday, February 2, following government proposal to eliminate the capital gains tax exemption for SGBs bought via secondary markets.

Finance Minister Nirmala Sitharaman in Budget 2026 on February 1, proposed capital gains tax exemption for SGBs only if purchased directly from RBI and held until maturity. This change applies to SGBs bought on or after 1 April 2026.

According to the new regulation, the capital gains exemption at maturity will be granted exclusively to those investors who subscribed to the SGB when it was first issued and maintained their investment until maturity. If you purchase the same SGB on the second...