Sovereign Gold Bonds redemption: This SGB series is up for final redemption in September; check details Under the scheme, the investors will be issued a Holding Certificate. The tenure of the bond is 8 years and is eligible for premature redemption from 5th year
Sovereign Gold Bonds (SGB) are government securities denominated in grams of gold. The Reserve Bank of India (RBI) issues SGBs on behalf of the Government of India as an alternative to actual gold. This scheme was introduced in 2015 to lower demand for physical gold. Under the scheme, the investors will be issued a Holding Certificate. The Bonds will be eligible for conversion into demat form.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} SGB taxation in budget 2024: Changed capital gain tax on maturity, selling prematurely in RBI's buyback or on stock exchange
SGB final redemption: Sovereign Gold Bonds 2016-17 Series-II
The SGB tranche was open for subscriptions from September 1 to September 9, 2016. Originally planned for release on September 23, 2016, the bonds were rescheduled to be released on September 30, 2016. The issue price was Rs 3,150, and the tentative redemption date is set for the last week of September 2024.What was the SGB series II issue price, interest rate
It is prudent to remember that the initial SGB was purchased for Rs 3150 per gram of gold. As per the notification issued by RBI August 8, 2016, “The SGB offered a fixed interest rate of 2.75% per annum on the initial investment amount”. Now, the prevailing interest rate is 2.50%.
Date of issue
Date of issuance was September 23, 2016.
The tenure of the bond is 8 years and is eligible for premature redemption from 5th year. As SGB 2016-17 series II was issued on September 23, the final redemption will be around the last week of September in 2024.
Redemption price
Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the week (Monday to Friday) preceding the subscription period. Therefore, the SGB redemption price is based on the simple average of the closing gold price for the week before the redemption date.
As per the RBI rule, the receiving office will notify the investor of the gold bond's maturity date one month before it matures.
Next final redemption of SGB
Sovereign Gold Bonds 2016-17 - Series III
Applications for the bond were accepted between October 24, 2016 and November 2, 2016. The bonds were issued on November 17, 2016. The issuance price was Rs 3007 per gram. The last redemption date should be around November 17, 2024.
SGB details
Every financial year, the RBI announces the issuance of SGB tranches. As of now, an investor is limited to 4 kg per individual each financial year, with a minimum investment of 1 gram. A person must indicate in the application form how much they wish to invest in order to make an investment. The quantity of gold invested is determined by the RBI's indicated issuance price. The balance amount is refunded to the investor's bank account.
Loan
Bonds can be used as collateral for loans. The loan-tovalue (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
Premature redemption list (October 2024- March 2025)
The Reserve Bank of India (RBI) has issued a press release outlining the details of the SGB tranches scheduled for premature redemption during October 2024 – March 2025, as well as a window for submitting requests for premature redemption. Note that premature redemption of the gold bonds is permitted after five years from the date of issue of such bonds.
Check the full list here.
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This story originally appeared on: India Times - Author:Faqs of Insurances
