Gold bond turns Rs 1L investment into Rs 3.48L
The Reserve Bank of India (RBI) has announced premature redemption prices for Sovereign Gold Bond SGB 2020-21 Series VI due on March 7, 2026 (March 8 being holiday) and SGB 2020-21 Series XII due on March 9, 2026.
The premature redemption of an SGB series is permitted after the fifth year from the date of issue of such gold bonds on the date on which interest is payable, as per a statement from the Reserve Bank of India (RBI).
What is the premature redemption price for SGB 2020-21 Series VI?
The premature redemption price due on March 7, 2026, has been fixed at Rs 16,063 per unit of SGB, based on the simple average of the closing price of gold for the last three business days, i.e., March 4, March 5 and March 6, 2026.
The SGB 2020-21 Series-VI was issued at Rs 5,117 per gram for offline bonds for investors applying online and the payment against the application made through digital mode was Rs 5,067.
Also read: Sovereign Gold Bond 2026: RBI announces SGB premature redemption dates from April 2026 – September 2026; check details
The absolute return of the gold bond series will be Rs 16,063 -Rs 5,067= Rs 10,996 (without factoring in the interest). In percentage terms, it will be 10,996 ÷ 5,067×100 = 217.01%.
It will yield an absolute simple return of 217% on the date of premature redemption.
What is the premature redemption price for SGB 2020-21 Series XII?
The premature redemption price due on March 8, 2026, has been fixed at Rs 16,063 per unit of SGB, based on the simple average of the closing price of gold for the last three business days, i.e., March 4, March 5 and March 6, 2026.
The issue price of the SGB was Rs 4,662 for offline investors and for online investors, the issue price of the gold bond was Rs 4,612.
The absolute return of the bond series comes to be Rs 16,063 -Rs 4,612= Rs 11,451 (without factoring in interest). In percentage terms, it is 11,451 ÷ 4,612×100 = 248.2%.
It will yield an absolute simple return of 248% on the date of premature redemption.
What is a Sovereign Gold Bond (SGB)? Who is the issuer?
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds are redeemed in cash on maturity. The bond is issued by the Reserve Bank of India (RBI) on behalf of the Government of India.
What is the rate of interest SGBs pay and how is it paid?
The bonds bear interest at the rate of 2.50% (fixed rate) per annum on the amount of the initial investment. Interest is credited semi-annually to the bank account of the investor and the last interest is payable on maturity along with the principal.
When are SGB customers issued a certificate of holding?
The customers are issued a certificate of holding on the date of the issuance of SGB. The certificate of holding can be collected from the issuing banks/SHCIL offices/post offices/designated stock exchanges/agents or obtained directly from the RBI on email, if an email address is provided in the application form.
The premature redemption of an SGB series is permitted after the fifth year from the date of issue of such gold bonds on the date on which interest is payable, as per a statement from the Reserve Bank of India (RBI).
What is the premature redemption price for SGB 2020-21 Series VI?
The premature redemption price due on March 7, 2026, has been fixed at Rs 16,063 per unit of SGB, based on the simple average of the closing price of gold for the last three business days, i.e., March 4, March 5 and March 6, 2026.
The SGB 2020-21 Series-VI was issued at Rs 5,117 per gram for offline bonds for investors applying online and the payment against the application made through digital mode was Rs 5,067.
Also read: Sovereign Gold Bond 2026: RBI announces SGB premature redemption dates from April 2026 – September 2026; check details
The absolute return of the gold bond series will be Rs 16,063 -Rs 5,067= Rs 10,996 (without factoring in the interest). In percentage terms, it will be 10,996 ÷ 5,067×100 = 217.01%.
It will yield an absolute simple return of 217% on the date of premature redemption.
What is the premature redemption price for SGB 2020-21 Series XII?
The premature redemption price due on March 8, 2026, has been fixed at Rs 16,063 per unit of SGB, based on the simple average of the closing price of gold for the last three business days, i.e., March 4, March 5 and March 6, 2026.
The issue price of the SGB was Rs 4,662 for offline investors and for online investors, the issue price of the gold bond was Rs 4,612.
The absolute return of the bond series comes to be Rs 16,063 -Rs 4,612= Rs 11,451 (without factoring in interest). In percentage terms, it is 11,451 ÷ 4,612×100 = 248.2%.
It will yield an absolute simple return of 248% on the date of premature redemption.
What is a Sovereign Gold Bond (SGB)? Who is the issuer?
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds are redeemed in cash on maturity. The bond is issued by the Reserve Bank of India (RBI) on behalf of the Government of India.
What is the rate of interest SGBs pay and how is it paid?
The bonds bear interest at the rate of 2.50% (fixed rate) per annum on the amount of the initial investment. Interest is credited semi-annually to the bank account of the investor and the last interest is payable on maturity along with the principal.
When are SGB customers issued a certificate of holding?
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