Sovereign Gold Bond 2017-18 collection VI yields over 220% return in 7.5 years; RBI fixes untimely redemption worth at Rs 9,453 per gram on Could 6
Buyers holding the Sovereign Gold Bond (SGB) 2017-18 Sequence VI, issued on November 6, 2017, can be eligible for untimely redemption on Could 6, 2025, at a worth of Rs 9,453 per gram, as notified by the Reserve Financial institution of India.
This marks a achieve of round 221% on the unique problem worth of Rs 2,945 per gram (or Rs 2,895 for buyers), over a holding interval of seven and a half years.
In an official assertion on Monday, the RBI stated, “The redemption worth for untimely redemption due on Could 06, 2025 shall be Rs 9,453/- (Rupees 9 Thousand 4 Hundred and Fifty-Three solely) per unit of SGB primarily based on the easy common of closing gold worth for the three enterprise days i.e., April 30, Could 02 and Could 05, 2025.”
Earlier, in response to the RBI the Sovereign Gold Bond 2017-18 Sequence VI was priced at Rs 2,945 per gram, primarily based on the common closing worth of gold of 999 purity from October 25 to 27, 2017. Buyers who utilized on-line and paid digitally had obtained a Rs 50 low cost, bringing the efficient problem worth to Rs 2,895 per gram.
The Sovereign Gold Bond Scheme was launched in 2015 by the Authorities of India, in session with the RBI, as a monetary various to bodily gold funding. Bonds are issued in denominations of 1 gram of gold or multiples thereof, and are tradable and eligible for conversion to dematerialised type. Every tranche is open for restricted subscription home windows and comes with a set rate of interest of two.50% each year, paid semi-annually. Capital positive factors on redemption are tax-free for particular person buyers, and the bonds will also be used as collateral for loans.
Redemption of SGBs is allowed after the fifth 12 months from the date of problem, however solely on the following curiosity fee date. The ultimate maturity is after eight years. The redemption worth is linked to the market worth of gold and is predicated on the easy common of closing costs of gold of 999 purity, in response to the RBI.
