Sovereign Gold Bond premature redemption: This SGB series can be withdrawn at 111.5% higher than issue price
premature redemption price of Sovereign Gold Bond (SGB) 2017-18 Series X will be Rs 6,265 per unit, according to a press release by the Reserve Bank of India (RBI) dated December 1, 2023.
«The redemption price of SGB shall be based on the simple average of closing gold price of 999 purity of the 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 premature redemption due on December 04, 2023, shall be Rs 6,265/- per unit of SGB based on the simple average of closing gold price for three business days i.e., November 29, 30, and December 01, 2023,» as per the press release.
The due date for tendering the eligible SGBs to the RBI for premature redemption is December 04, 2023, the central bank said.
The tenure of the Sovereign Gold Bond Scheme is eight years; however, premature withdrawal can be done after the fifth year from the date of issue of interest payment dates.
This particular SGB 2017-18 Series X was issued at Rs 2,961 per gram on November 24, 2017. So, the absolute return comes to Rs 6,265-2,961= Rs 3,304 (without factoring in the interest). In percentage terms, it comes to Rs {(3,304/2961) *100} %= 111.5839%.
Sovereign Gold Bond 2016-17 Series IV can be withdrawn at 75% higher than issue price on this date
So, if the investors opt for premature withdrawal, then the absolute return will be 111.5%.
How to apply for premature redemption of SGB 2017-18 Series X
«In case of premature redemption, investors can approach the concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon payment date. Request for premature redemption can only be entertained if the
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