RBI opens early redemption window for SGB 2019-20 Series VII
New Delhi, June 9
The Reserve Bank of India has announced the premature redemption price for Sovereign Gold Bonds issued in the 2019-20 Series VII, according to a release.
"In terms of GOI notification F.No.4(7)-B(W&M)/2019 dated September 30, 2019 (SGB 2019-20 Series-VII-Issue date December 10, 2019) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable," the RBI release said.
"Accordingly, the next due date of premature redemption of the above tranche shall be on June 10, 2026," it added.
The central bank said that the redemption price of SGB shall be based on simple average of closing price of gold of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA).
"Accordingly, the redemption price for premature redemption due on June 10, 2026, shall be Rs 15,275 per unit of SGB based on the simple average of closing price of gold for the three business days i.e., June 05, June 08, and June 09, 2026," it added.
— ANI
Reader Comments
Great news for investors! ₹15,275 per unit is a very attractive price. I wish the RBI would also consider allowing more frequent redemption windows or at least provide clearer communication about upcoming dates. Many of my relatives missed the last early redemption window simply because they didn't know about it in time.
Been holding SGBs since 2018 and this is a solid move. The price of gold has been on a tear, and ₹15,275 seems fair based on the IBJA average. My only gripe is that the tax treatment of capital gains on premature redemption isn't clearly explained in these announcements. Hope the RBI clarifies soon 🤔
Wait, I still have SGBs from 2020 series. When will my turn come? Also, the RBI should consider allowing partial redemption. Not everyone wants to sell all units at once. I'd like to keep some for the long haul but cash out a few units for current expenses. That flexibility would make SGBs even more attractive.
Good move, but honestly, the redemption process feels unnecessarily bureaucratic. Why do we need to go through a release like this? A simple SMS or email notification to all SGB holders would be far more useful. Also, the calculation method using IBJA rates should be made more transparent. I've had to Google the formula every time! 😅
This is a good example of why SGBs are better than physical gold. No making charges, no purity concerns, and now a clear exit path. ₹15,275 is a great
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.