RBI fixes premature redemption price of sovereign gold bond 2021-22 series VI at Rs 15,334 per unit

New Delhi: The Reserve Bank of India (RBI) has fixed the premature redemption price of Sovereign Gold Bond (SGB) 2021-22 Series VI at Rs 15,334 per unit with the redemption due on Monday.

The tranche was issued on September 7, 2021 and the due date for its premature redemption falls on September 7, 2026, the central bank said in a notification.

Under the Sovereign Gold Bond Scheme, premature redemption may be permitted after the fifth year from the date of issue on an interest payment date.

In addition, the redemption price is based on the simple average of the closing prices of 999-purity gold for the three business days preceding the redemption date as published by the India Bullion and Jewellers Association Ltd (IBJA).

Accordingly, the redemption price of Rs 15,334 per unit is based on the average closing gold prices for September 2, 3 and 4, 2026, the RBI said.

The RBI also said that gold bonds under the scheme may be held by a trust, Hindu Undivided Family (HUF), charitable institution, university or a person resident in India, being an individual, either in their own capacity on behalf of a minor child or jointly with another individual.

The RBI's notification did not specify the issue price of the September 2021 tranche. The absolute gain or return on the original investment therefore cannot be calculated from the redemption price alone.

Earlier in April, the central bank opened a premature redemption window for holders of Sovereign Gold Bond (SGB) 2020-21 Series VII. It fixed the redemption price at Rs 15,254 per unit that was calculated as the simple average of closing prices for 999-purity gold over the three preceding business days.

Moreover, investors who subscribed at the original issue price of Rs 5,051 per unit stand to pocket capital gains of over 200 per cent.

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