New Delhi: The Reserve Bank of India (RBI) has released the details of Sovereign Gold Bond (SGB) tranches falling due for premature redemption during the period April 01, 2024 – September 30, 2024, along with the window available for submission of request for premature redemption by the investors.
As per RBI, though the tenor of the Sovereign Gold Bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. The bond will be tradable on Exchanges, if held in demat form. It can also be transferred to any other eligible investor.
RBI has however said that the above-mentioned dates may undergo a change in case of unscheduled holiday/s.
“Investors are advised to take note of the period for submission of requests for redemption of SGB, in case they choose to redeem their holdings before maturity,” RBI added.
In case of premature redemption, investors can approach the concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon payment date. Request for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond.
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.
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