The RBI announced the redemption price for premature redemption of the SGB 2021-22 Series-III, due on June 8, 2026. This outlines conditions for early redemption of Sovereign Gold Bonds.
Premature Redemption of Sovereign Gold Bond
The Reserve Bank of India (RBI) has issued a notification regarding the premature redemption of Sovereign Gold Bond (SGB) 2021-22 Series-III, which will be permitted after the completion of five years from the issue date. The due date for this tranche is set for June 8, 2026.
The redemption price will be determined based on the simple average of the closing prices of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the three business days preceding the redemption date.
This provision allows investors some flexibility, enhancing the attractiveness of the SGB scheme, particularly for those who may wish to liquidate their investments earlier than the maturity date.
Practitioners in financial services should be aware of this date and the conditions prescribed for investors considering premature redemption, as it affects liquidity management for those invested in SGB.
Citations
- GOI Notification F.No.4(5)-B(W&M)/2021
