The Reserve Bank of India (RBI) on Tuesday said the redemption price for the premature redemption of Sovereign Gold Bonds (SGBs), due on February 8, will be Rs 4,813 per unit.
"The redemption price for the premature redemption falling due on February 08, 2022, shall be Rs 4,813 per unit of SGB, based on the simple average of closing gold price for the week January 31- February 04, 2022," RBI said in a release.
Sovereign Gold Bonds (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 will be redeemed in cash on maturity. The Bond is issued by the Reserve Bank on behalf of the government of India.
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As per the government notification on SGB issued on January 14, 2016, redemption may be permitted after the fifth year from the date of issue of such gold bonds on the date on which interest is payable.
Therefore, the forthcoming due date of premature redemption of the above tranche shall be February 08, 2022, the release said.
The redemption price of SGB is based on the simple average closing gold price of 999 purity (published by the India Bullion and Jewellers Association Ltd (IBJA)) of the week (Monday-Friday) preceding the date of redemption, it said.
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