RBI fixes premature redemption date and price for SGB 2017-18 Series I – Issue date May 12, 2017

The Reserve Bank of India (RBI) announced today the premature redemption date and price for SGB 2017–18 Series I.

According to the RBI notification, the second due date of premature redemption under the above tranch of the Sovereign Gold Bond (SGB) Scheme shall be November 11, 2022 (November 12, 2022, being a second Saturday).

The redemption price of SGB is worked out on a simple average of the 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). Therefore, the redemption price announced by RBI is Rs 5053/-(Rupees Five thousand fifty-three only) per unit for the bonds due on 11.11.2022.  The above price is calculated based on the simple average of the closing gold price for the week of October 31-November 04, 2022.

In terms of GOI Notification F.No.4(8) – W&M/2017 dated April 20, 2017 (SGB 2017-18 Series I – Issue date May 12, 2017) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after the fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the second due date of premature redemption of the above tranche shall be November 11, 2022 (November 12, 2022, being a second Saturday).

Surendra Naik

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Surendra Naik

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