PNB Gilts Share Price Jumps Over 10% After Government Announces Tax Relief for Foreign Investors

PNB Gilts share price gained sharply on Friday after the government announced tax exemptions and investment reforms aimed at increasing foreign participation in India's government securities market. 

PNB Gilts share price gained momentum with significant trading volumes as the RBI Governor began his speech. 

Why Is PNB Gilts Share Price Rising Today? 

PNB Gilts came into focus after the government introduced measures to encourage foreign investment in government securities. 

The company is one of India's leading primary dealers in government securities and is engaged in underwriting, trading, distribution, and market-making activities across sovereign debt instruments. As a result, investors closely tracked the stock following the policy announcement aimed at deepening India's government bond market. 

Government Announces Tax Exemptions for Eligible Foreign Investors 

The government has issued an ordinance amending Schedule IV of the Income-tax Act, 2025, by introducing provisions that provide tax exemptions on specified government securities investments. 

Under the revised framework, interest income earned on eligible government securities and capital gains arising from their sale, transfer, or exchange will be exempt from income tax for eligible foreign investors. In addition, no withholding tax will apply to such investments. 

The amendments have been made effective retrospectively from April 1, 2026. 

Read More: Government Exempts FIIs from Interest and Capital Gains Tax on G-Sec Investments 

Capital Gains and Interest Income Become Tax-Free for Foreign Investors  

Prior to the amendment, long-term capital gains on government securities were taxed at 12.5%, while interest income attracted a withholding tax of 20%. 

Following the ordinance, both taxes have been reduced to zero for eligible investors covered under the revised provisions. 

The government has stated that the measures are aimed at enhancing foreign participation in India's government securities market and attracting long-term overseas capital. 

About PNB Gilts 

PNB Gilts is the only listed entity in India holding a Primary Dealership Licence issued by the Reserve Bank of India. 

The company underwrites government securities issuances and trades a range of fixed-income instruments, including Government Securities (G-Secs), Treasury Bills, State Development Loans (SDLs), Corporate Bonds, Interest Rate Swaps, Certificates of Deposit, Commercial Papers, and other money market instruments. 

Its business is closely linked to activity in the government securities market, making the stock a key beneficiary of investor attention whenever significant policy developments impact the debt market. 

PNB Gilts Share Price Performance 

PNB Gilts share price surged as much as 10.36% to ₹99.13 during Friday's session and touched an intraday high of ₹99.90 on the BSE. 

As of 12:32 PM on June 5, 2026, PNB Gilts share price was trading at ₹94.41 each, up 4.52% on the BSE, with volumes on the counter rising more than 4.5 times on the BSE. 

Conclusion 

PNB Gilts share price remained in focus after the government announced tax exemptions on eligible government securities investments by foreign investors. The policy measures, aimed at increasing foreign participation in India's debt market, triggered strong buying interest in the stock during Friday's trading session. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

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