1st Sovereign Gold Bonds To Mature On November 30: Check Final Redemption Price And Other Details

New Delhi: The first tranche of Sovereign Gold Bond (SGB), initiated in 2015 is due for redemption on on November 30, 2023, the Reserve Bank of India (RBI) has announced.

"In terms of GOI Notification F.No.4(19) - W&M/2014 dated October 30, 2015 (SGB 2015-I - Issue date November 30, 2015) on Sovereign Gold Bond Scheme, the Gold Bonds shall be repayable on the expiration of eight years from the date of the issue of the Gold Bonds. Accordingly, the final redemption date of the above tranche shall be November 30, 2023," RBI said in an official release.

The redemption price of SGB shall be based on the simple average of 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), said the RBI. 

Sovereign Gold Bonds 1st Tranche: Price For The Final Redemption

"Accordingly, the price for the final redemption due on November 30, 2023 shall be ₹6132/- (Rupees Six thousand one hundred thirty-two only) per unit of SGB based on the simple average of closing price of gold for the week November 20-24, 2023," the central bank added.

What is Sovereign Gold Bond Scheme?

Sovereign Gold Bond Scheme 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 Reserve Bank on behalf of Government of India.

How Is Sovereign Gold Bond Scheme being sold?

The bonds will be sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

Who can buy Sovereign Gold Bond Scheme?

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.