The premature redemption rate of Sovereign Gold Bond Series VI of SGB 2017-18 is Rs 6140/per unit. The issue price for the same was Rs 2,945.Also read: Sovereign Gold Bonds: What are the tax implications?
Redemption price calculation
The simple average of the closing gold price for 999 purity over the previous three business days from the redemption date, as announced by the India Bullion and Jewellers Association Ltd (IBJA), will be used as the basis for the redemption price of SGB.
Accordingly, based on the simple average of the closing gold price for the previous three days, May 03, May 04, and May 05, 2023, the redemption price for the premature redemption due on May 06, 2023 will be Rs 6140/- (Rupees Six Thousand One Hundred and Forty Only) per unit of SGB.
The Gold Bonds are repaid eight years following the date of issuance, provided that early redemption of the Gold Bonds is permitted after the fifth year and that the repayments are made on the date of the subsequent interest payment.The redemption price for the Gold Bonds will be determined by the simple average of the closing price of 999-purity gold over the previous three business days from the day of repayment, as announced by the India Bullion and Jewellers Association Limited. The Gold Bonds will be redeemed in Indian Rupees upon maturity.
The investor must be notified of the bond’s maturity date one month in advance by the RBI or depository.
The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
Premature withdrawal rule
Investors should get in touch with the appropriate bank SHCIL office, Post Office, or agent thirty days prior to the coupon payment date in the event of a premature redemption. Only requests for premature redemption will be taken into consideration if the investor contacts the appropriate bank or post office at least one day prior to the coupon payment date. The customer’s designated bank account, which was provided when applying for the bond, will receive the proceeds.