RBI Fixes Premature Redemption Price Of Gold Bond At ₹ 5,115 Per Unit

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Mumbai: The price for premature redemption of sovereign gold bond (SGB) due on Tuesday has been fixed at ₹ 5,115 per unit, an RBI release said.

Premature redemption of Gold Bond is permitted after the fifth year from the date of issue and the due date of SGB 2016-17, Series III issued on November 17, 2016 is May 17, 2022.

The redemption price of SGB is based on the average closing price of gold of 999 purity of the week (Monday-Friday) preceding the date of redemption as published by the India Bullion and Jewellers Association Ltd (IBJA).

“Accordingly, the redemption price for the second premature redemption due on May 17, 2022 shall be ₹ 5,115 per unit of SGB based on the simple average of closing price of gold for the week May 09-13, 2022,” the RBI said in a statement.

The issue price of the Sovereign Gold Bond Scheme 2016-17, Series III was ₹ 2,957 per gram of gold.

The nominal value of the bond was fixed on the basis of average closing price for gold of 999 purity (October 17-21, 2016) published by the IBJA at ₹ 3,007 per gram.

The government, in consultation with the RBI, had offered a discount of ₹ 50 per gram on the nominal value of the sovereign gold bond.

The RBI issues the bonds on behalf of the Government of India which are sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and NSE and BSE.

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