The RBI announced the final redemption price for the Sovereign Gold Bond 2018-19 Series-I, due May 4, 2026, emphasizing adherence to established guidelines.
Final Redemption Price for Sovereign Gold Bonds
The Reserve Bank of India has issued a notification regarding the final redemption price for the Sovereign Gold Bond (SGB) 2018-19 Series-I, which is set to mature on May 4, 2026. This redemption follows the guidelines set forth in the Government of India’s notification dated April 13, 2018.
The redemption price will be determined based on the simple average of the closing price of gold of 999 purity for the previous three business days. This method ensures that the final price reflects the market conditions leading up to the redemption date.
“The Gold Bond shall be repayable on the expiration of eight years from the date of issue.”
Practitioners should take note of the timing and pricing implications for clients who hold these bonds, ensuring that they understand the financial repercussions and their options upon maturity. Clients may also use this information for financial planning and investment strategies.
Citations
- Government of India Notification (2018) F.No.4(8)-W&M/2018
