Sovereign Gold Bond Premature Redemption: Important news for Sovereign Gold Bond investors. The Reserve Bank of India has announced the pre-redemption price of Sovereign Gold Bond 2019-20 Series IV.
This bond was issued in 2019, marking its six-year anniversary. According to a statement issued by the RBI, investors can redeem Sovereign Gold Bonds before maturity on September 17, 2025.
Opportunity to redeem before maturity
The maturity period of Sovereign Gold Bonds is 8 years. However, investors can exit before this period. According to Reserve Bank of India guidelines, to exit Sovereign Gold Bonds, a period of 5 years must have elapsed from the date of issue. It should be noted that SGB 2019-20 Series IV opened for subscription on September 9th and was available until September 13th. The bond was issued on September 17th, 2019.
SGB ​​Premature Redemption Price
According to information provided by the central bank, the premature redemption price for SGB 2019-20 Series IV is ₹11,003 per unit, which is the average of the gold price over the last three trading days. This price is based on the gold price on September 12, 15, and 16. It was issued at a price of ₹3,890 per gram. This means that investors are receiving a simple return of approximately 183 percent over five years.
2.5% interest is available every year
It is worth noting that investments in Sovereign Gold Bonds earn an annual interest rate of 2.50%. This interest amount is credited to the investor’s bank account on a semi-annual basis. Investors will receive the final interest installment along with the principal amount upon maturity.
