Sovereign Gold Bond investors, who invested in SGB 2017-18 Series III, can opt for premature redemption at more than double of the issue price. The issue price of Sovereign Gold Bond 2017-18 Scheme Series III was Rs 2964 per gram. The RBI has fixed the redemption price at Rs 6063 per gram, which is 104% more than the issue price.
The Reserve Bank of India (RBI) has also fixed the second due date for premature redemption of Sovereign Gold Bond 2017-18 Series III. The bonds were issued on October 16, 2017.
Redemption Date and Price
The premature redemption price has been fixed at Rs 6063 per gram while the second due date of premature redemption of this SGB tranche is April 15, 2023.
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As per SGB rules, premature redemption of Gold Bond is allowed after the fifth year from the date of issue of such Gold Bond on the date on which interest is payable.
“In terms of GOI Notification F.No.4(25) – W&M/2017 dated October 06, 2017 (SGB 2017-18, Series III – Issue date October 16, 2017) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the second due date of premature redemption of the above tranche shall be April 15, 2023 (April 16, 2023 being a Sunday),” the RBI said.
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“Further, the redemption price of SGB shall be based on the simple average of closing gold price of 999 purity of previous three business days from the date of redemption as published by the India Bullion and Jewellers Association Ltd (IBJA). Accordingly, the redemption price for the premature redemption due on April 15, 2023 (April 16, 2023 being a Sunday) shall be ₹6063/- (Rupees Six thousand sixty-three only) per unit of SGB based on the simple average of closing gold price for the last three days April 11, April 12 and April 13, 2023,” it added.