RBI has fixed a redemption price of ₹15,814 per unit for premature redemption of Sovereign Gold Bond issued on September 17, 2019.
Accordingly, the redemption price for premature redemption is due on March 17. The SGB 2019-20 Series IV was issued at ₹3,890 per gram for offline buyers and ₹3,840 per gram for offline buyers.
Consequently, investors who are opting for premature redemption now will get a return of over four times.
From April 1, SGB capital gains tax rules will change, allowing tax-free gains only for original subscribers who hold bonds until 8-year maturity. Secondary market buyers or those exiting early will face a 12.5 per cent long-term capital gains tax (without indexation) or short-term rates.
The redemption price was based on the simple average of closing price of gold for the last three business days as published by the India Bullion and Jewellers Association, said RBI on Tuesday.
From 5th year
As per the Sovereign Gold Bond Scheme, premature redemption of Gold Bond will be allowed after fifth year from the date of issue. However, the bond tenure is of 8 years.
RBI has issued about 14.70 crore units of SGB so far and redeemed 2.33 crore unit, so far.