If you purchased the Sovereign Gold Bond Scheme (SGB) 2019-20 Series IV, issued on September 17, 2019, you are eligible for premature redemption starting today, September 17, 2024.
The Reserve Bank of India (RBI) has permitted premature redemption after five years from the issue date, specifically on the dates when interest is payable.
Redemption Price for Today (September 17, 2024)
The redemption price of the SGB is calculated based on the simple average of closing gold prices (999 purity) from the three business days preceding the redemption date.
The gold prices for September 12, 13, and 16, 2024, published by the India Bullion and Jewellers Association Ltd (IBJA), resulted in a redemption price of ₹7,278 per unit.
Overview of the Sovereign Gold Bond (SGB) Scheme
What is SGB?
Sovereign Gold Bonds are government securities issued in grams of gold. They serve as an alternative to holding physical gold, offering a convenient and secure investment option.
How is SGB Sold?
The bonds are sold via scheduled commercial banks (excluding Small Finance Banks and Payment Banks), the Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges like the NSE and BSE.
Who Can Buy SGB?
The bonds are available for sale to resident individuals, HUFs (Hindu Undivided Families), Trusts, Universities, and Charitable Institutions.
By redeeming today, investors can benefit from the high redemption price and avoid the risks associated with physical gold.
