Sovereign Gold Bond 2017-18 Series IV, 2018-19 Series II Maturing Today, April 23: Final Redemption Price And Other Key Details | Bullion News

New Delhi: The Sovereign Gold Bond Sovereign Gold Bonds (SGB) under the 2017-18 Series IV and 2018-19 Series II tranches, is due for redemption on 23 April 2024, as per Reserve Bank of India (RBI) circular.

“In terms of GOI Notification F.No.4(25) – W&M/2017 dated October 06, 2017 (SGB 2017-18 Series IV – Issue date October 23, 2017) and F.No. 4(22)-B(W&M)/2018 dated October 08, 2018 (SGB 2018-19 Series II – Issue date October 23, 2018) 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.  Accordingly, the next due date of premature redemption of the above tranches shall be April 23, 2024,” RBI had said in a release.

The redemption price of SGB shall be based on the simple average of closing gold price of 999 purity of previous three business days from the date of redemption as published by the India Bullion and Jewellers Association Ltd (IBJA), RBI said. 

“Accordingly, the redemption price for premature redemption due on April 23, 2024 shall be ₹7325/- (Rupees Seven thousand three hundred and twenty five only) per unit of SGB based on the simple average of closing gold price for three business days i.e., April 18, 19 and 22, 2024,” the central bank added.

What is Sovereign Gold Bond Scheme?

Sovereign Gold Bond Scheme are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

How Is Sovereign Gold Bond Scheme being sold?

The bonds will be sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

Who can buy Sovereign Gold Bond Scheme?

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

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