Premature Redemption of Gold Bond Series V (2017-18) and Series VI (2019-20) SGB, Occurs on Akshaya Tritiya: What Amount of Cash is Due?
It's that time of the year again, folks! The Premature Redemption of the Sovereign Gold Bond (SGB) Scheme Series V and VI is set to take place on April 30, 2025, coinciding with the auspicious day of Akshaya Tritiya.
For the uninitiated, Akshaya Tritiya, also known as Akti or Akha Teej, is celebrated as one of the most prosperous days in the Hindu calendar. Falling on the Lunar day of Shukla Paksha in the month of Vaisakha, this day signifies 'unending prosperity'.
But what about the nitty-gritty of the SGB redeeming process? Well, the Premature Redemption price for the SGB will be based on the simple average of the closing gold price of 999 purity of the previous three business days from the date of redemption, as provided by the India Bullion and Jewellers Association Ltd (IBJA).
According to the Reserve Bank of India (RBI), the redemption price for the upcoming Premature Redemption on April 30, 2025, stands at around Rs 9,558/- per unit of SGB. This price has been calculated using the simple average of the closing gold prices for the days April 25, April 28, and April 29, 2025.
The Sovereign Gold Bond Scheme: Unraveling Its Mysteries
In a nutshell, the Sovereign Gold Bond Scheme is a government-issued security that represents physical gold. By investing in these bonds, one essentially buys gold without the hassle of storage. The investor pays the purchase price in cash, and upon maturity, the bond is redeemed in cash. The Reserves Bank of India stands as the issuer of these bonds on behalf of the Government of India.
Bringing Home the Gold: How to Buy SGBs
These bonds can be purchased through various channels, including scheduled commercial banks (except Small Finance Banks and Payment Banks), the Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges like the National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
Whose Gold Is It Anyway?
The SGB scheme is designed primarily for resident individuals, HUFs, trusts, universities, and charitable institutions. However, the exact eligibility criteria may vary, so it's always a good idea to check the official sources for the most accurate information.
As always, happy investing, and may your trap be as golden as the bonds themselves!
- By April 30, 2025, investors can prematurely redeem their Sovereign Gold Bonds (SGBs) on Akshaya Tritiya, with the redemption price being based on the simple average of gold prices from the previous three business days.
- For those looking to invest in securities without the hassle of storage, the Sovereign Gold Bond Scheme offers a government-issued solution, representing physical gold that can be bought and sold like traditional securities.
- On Akshaya Tritiya, investors can choose to invest in grams of gold through the SGB scheme, as it is primarily designed for resident individuals, HUFs, trusts, universities, and charitable institutions.
