You can buy SGB (Sovereign Gold Bond) from banks and other financial intermediaries or directly from the broker.
When you buy SGB from any financial institute then it is always preferable to mention your Demat account information, so that, you hold SGB in your Demat account and can be traded on NSE like stocks. In that case, you don’t have any locking period. However, if you have not provided Demat information to the concerned bank then you hold a physical certificate for your SGB holdings.
To sell SGB (before maturity), SGB must be converted into dematerialized form. So if you want to sell SGB before maturity but have not yet converted bonds into Demat form then firstly, you have to provide your Demat account details to the concerned bank, so that, the bank will upload the details on the e-Kuber portal of RBI to process dematerialization request.
To provide your Demat details, you must get CMR (Client Master Report) from the respective broker. The CMR contains your Demat account details including name, DOB, nominee, bank account, etc.
Once the concerned bank has mapped your Demat details and SGB is successfully credited to your Demat account. Then you can easily sell it on the NSE by placing a regular sell order just like stocks.
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