Sovereign Gold Bond premature redemption on Monday, December 18. Check details

Reserve Bank of India (RBI) has set Monday, December 18 as the date for premature redemption of SGB 2017-18 Series XII of the sovereign gold bond. The price for premature redemption is Rs 6,199 per gram.

Premature redemption in the SGB scheme is permitted after the completion of the fifth year from the date of issue. The tranche was issued by RBI on December 18, 2017.

The redemption price of SGB is based on the simple average of the 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). In this case, the three business days are between December 13 and December 15, 2023.

Additionally, the RBI has also announced the issue of the new Sovereign Gold Bond Scheme 2023-24 in two tranches (December and February). The new SGB Series III subscription period is scheduled for December 18-22 and Series IV is for February 12-16. The issue price of SGB Series III has been kept at Rs 6,199 per gram.

For investors willing to apply online, there is a discount of Rs 50 per gram. For such investors, the issue price of the gold bond will be Rs 6,149 per gram.

The sovereign gold bonds are sold through scheduled commercial banks, Stock Holding Corporation of India (SHCIL), Clearing Corporation of India (CCIL), designated post offices, and stock exchanges. The SGBs will be restricted for sale to resident individuals, HUFs, Trusts, Universities, and Charitable Institutions.
The SGBs will be denominated in multiples of gram(s) of gold with a basic unit of one gram. The tenor of these bonds will be for 8 years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.The sovereign gold bond scheme was launched in November 2015 with the objective to reduce the demand for physical gold and shift a part of the domestic savings — used for the purchase of gold — into financial savings.

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