New Delhi: The Reserve Bank of India (RBI) on Thursday said it has fixed the premature redemption price of SGB 2019-20 Series VI (issue date October 30, 2019) at Rs 14,213 per unit, with the redemption due on Friday.
The redemption price for premature redemption due on October 30 “shall be Rs 14,213 per unit of SGB based on the simple average of closing price of gold for the three business days i.e., October 27, October 28, and October 29, 2026”, the Central Bank said in a notification.
In terms of a government notification 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 tranche shall be on October 30, 2026,” said the RBI.
Further, 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), it added.
The RBI said that gold bonds under the scheme may be held by a trust, Hindu Undivided Family (HUF), charitable institution, university or a person resident in India, being an individual, either in their own capacity on behalf of a minor child or jointly with another individual.
Earlier in September, the RBI fixed the premature redemption price of Sovereign Gold Bond (SGB) 2021-22 Series VI at Rs 15,334 per unit. The tranche was issued on September 7, 2021, and the due date for its premature redemption fell on September 7, 2026, the central bank said in a notification.
In April, the central bank opened a premature redemption window for holders of Sovereign Gold Bond (SGB) 2020-21 Series VII. It fixed the redemption price at Rs 15,254 per unit that was calculated as the simple average of closing prices for 999-purity gold over the three preceding business days.
(IANS)
