Sovereign Gold Bonds (SGBs) are government-backed securities that represent a certain amount of gold, measured in grams. These bonds offer a convenient alternative to holding physical gold. 

Similar to Stocks SGBs can be acquired either at the time of Public Issue of each Tranche, or buy from the Secondary market of already issued SGB's.  Interest is credited to the Investors bank account semi annually by the depository to those who hold the Bonds on the record date for such interest payments.  When the bonds reach maturity, they are redeemed to the Investor who holds them on the record date fixed for this purpose.  

It's important to note that these bonds are issued by the Reserve Bank on behalf of the Government of India