RBI has announced a premature redemption window for SGB investors today as the exit date, providing investors returns exceeding 200 percent on their investment.
Central Bank of India has fixed the redemption price at Rs 15,254 per unit, analyzing the closing amount for 999-purity gold for the past three working days as per IBJA (India Bullion and Jewellers Association)
Absolute Returns on the Investment
First, the sovereign gold bonds were issued at Rs 5,015 per unit, and the redemption return would be 204% to the holders who will redeem the bond prematurely.
First Premature Redemption of SGB 2020-21 Series VII
As per RBI rules, after the five-year tenure of SGB, the given SGB issue first became due for premature redemption of series VII on 20th October, 2025.
What Changed For SGBs In This Year's Union Budget 2026?
Holders who bought the financial instrument from the RBI and will hold it till the maturity date will get the tax-exempt status. Those who purchased the SGBs from the secondary market will have to pay capital gains tax. This new rule would be applicable from 1st April 2026.
Status of SGB Scheme in 2026
No new SGB scheme for the year 2026 and there is no calendar issued as of April. The scheme is paused due to the high borrowing concerns. Existing SGB investors will continue till maturity at an interest rate of 2.5% or early exit due to early redemption of the SGB scheme. Those investors with existing holdings might also trade SGBs on stock exchanges.
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