RBI announces premature redemption price for Sovereign Gold Bonds. Here is how it is calculated

1 week ago 12

1 min read 23 Apr 2024, 03:04 PM IST

The RBI has announced the aboriginal redemption terms for Sovereign Gold Bonds issued successful 2017-18 and 2018-19. Understanding the calculation method, which involves the mean of the past 3 concern days' closing prices of 999 purity gold, is important for investors.

The Reserve Bank of India (RBI) has declared the aboriginal redemption terms for Sovereign Gold Bonds (SGBs) from the 2017-18 Series IV and 2018-19 Series II tranches, owed connected April 23. The announcement aligns with the presumption stated successful the Government of India notifications connected October 6, 2017, and October 8, 2018. These presumption let holders the enactment for aboriginal redemption aft 5 years from the contented date, coinciding with the involvement outgo dates connected these bonds.

How is redemption terms calculated?

The calculation of the redemption terms is based connected the mean of the closing prices of 999 purity gold, arsenic reported by the India Bullion and Jewellers Association. The dates considered for the calculation were the preceding 3 concern days earlier the redemption date. Consequently, the terms for the upcoming April 23 redemption is ₹7,325 per gram of gold. This terms reflects the mean golden prices recorded connected April 18, 19, and 22.

In a related development, the RBI has besides facilitated the aboriginal redemption of the SGB 2017-18, Series III connected April 16. The redemption terms for this bid has been determined astatine ₹7,260 per unit, based connected akin averaging of the golden prices implicit the applicable days earlier the redemption.

Launched nether the Government Securities Act of 2006, the Sovereign Gold Bond Scheme is aimed astatine offering investors a systematic enactment to put successful gold. It catered to investors, including individuals, trusts, charitable institutions, and universities. The bonds allowed investments starting from 1 gram of gold, with individuals allowed a maximum of 4 kg per fiscal year, and trusts and akin entities up to 20 kg.

(With inputs from ANI)

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Published: 23 Apr 2024, 03:04 PM IST