The Reserve Bank of India (RBI) announced the final redemption under the Sovereign Gold Bond details of SGB 2016-17 Series III issued on November 17, 2016. The SGB is repayable on the expiration of eight years from the date of issue of the Gold Bonds. Accordingly, the final redemption date of the above tranche shall be November 16, 2024 (November 17, 2024 being a holiday). SGBs are government securities denominated in grams of 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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What is final redemption price for SGB 2016-17 Series III
As per an RBI notification dated November 8, 2024, the redemption price for the final SGB redemption due on November 16, is Rs 7,788 per unit of SGB based on the simple average of closing gold price for the week November 04-08, 2024.
How is the SGB final price calculated
The redemption price of SGB will be based on the simple average of the closing price of gold of 999 purity for the week (Monday-Friday) preceding the redemption date, as reported by the India Bullion and Jewellers Association Ltd.
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What was the issue price of Sovereign Gold Bond (SGB) 2016-17 Series III
The Sovereign Gold Bond (SGB) 2016–17 Series III was issued at a price of Rs 3,007 per gram.
The final redemption, which is due on November 16, has a redemption price of Rs 7,788 per unit. Additionally, for eight years, a 2.50 percent annual interest rate was paid.
What are the procedures involved during redemption?
The investor will be advised one month before maturity regarding the ensuing maturity of the bond.
On the date of maturity, the maturity proceeds will be credited to the bank account as per the details on record.
In case there are changes in any details, such as, account number, email ids, then the investor must intimate the bank/SHCIL/PO promptly.
How to update details in SGB
To update your Sovereign Gold Bond (SGB) information, get in touch with the bank, SHCIL, or post office where you bought the bond. Contacting the designated stock exchange or agent where you purchased the stocks is another option.
Interest payment on SGB
The interest and potential for capital growth increase the returns on sovereign gold bonds. i) The interest shall be payable in half-yearly rests and the last interest shall be payable along with the principal on maturity.
What is the procedure to be followed in the eventuality of death of an investor?
According to the RBI FAQs, “The nominee/nominees to the bond may approach the respective Receiving Office with their claim. The claim of the nominee/nominees will be recognized in terms of the provision of the Government Securities Act, 2006 read with Chapter III of Government Securities Regulation, 2007. In the absence of nomination, claim of the executors or administrators of the deceased holder or claim of the holder of the succession certificate (issued under Part X of Indian Succession Act) may be submitted to the Receiving Offices/Depository. It may be noted that the above provisions are applicable in the case of a deceased minor investor also. The title of the bond in such cases too will pass to the person fulfilling the criteria laid down in Government Securities Act, 2006 and not necessarily to the Natural Guardian.”
