Sovereign gold bonds: First due date for premature redemption of SGB 2017-18 series V set on 29 Oct
The first due date for premature redemption of SGB 2017-18 Series V is set on October 29. Also, RBI has announced the redemption price for this series.
The Reserve Bank of India (RBI) on Friday announced the due date for the first premature redemption of series V under Sovereign Gold Bond (SGB) 2017-18. Generally, premature redemption in a gold bond is allowed after the fifth year from the date of issuance of these sovereign bonds. That being said, the first due date for premature redemption of SGB 2017-18 Series V is set on October 29. Also, RBI has announced the redemption price for this series.
In its statement, for SGB 2017-18 Series V, RBI said, "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 first due date of premature redemption of the above tranche shall be October 29, 2022 (October 30, 2022, being a Sunday)."
The SGB 2017-18 Series V was issued on October 30, 2017.
Further, in the statement, RBI said, "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)."
Accordingly, RBI has set the redemption price for premature redemption due on October 29, 2022, at ₹5058 per unit of SGB based on the simple average of closing gold price for three business days i.e., October 25, 27, and 28, 2022.
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