Now Reading: RBI sets final SGB redemption price at Rs 14,425 per unit
-
01
RBI sets final SGB redemption price at Rs 14,425 per unit
The Story in Brief
The Reserve Bank of India (RBI) announced the redemption price for the final tranche of the Sovereign Gold Bond (SGB) Scheme 2018-19 Series-II at Rs 14,425 per unit of SGB. The bonds mature on 23 October 2026, completing eight years from the issue date of 23 October 2018.
The redemption price is based on the simple average of the closing price of gold of 999 purity for the three business days of 19, 21 and 22 October 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA). The government notification dated 8 October 2018 governs the terms.
Indian Opinion Analysis
The redemption price of Rs 14,425 per unit is the final settlement value for investors who held this SGB tranche to maturity. Investors who bought at the issue price or in secondary market will realise a gain or loss relative to this fixed payout. The calculation method, based on the three-day average of IBJA gold prices, is standard and leaves no discretion to the RBI. Bondholders must note that 23 October 2026 is the last date for redemption, and the process will follow the scheme's existing payout mechanism. No further trading or conversion is possible after this date.
Source: rbi.org.in
This brief was synthesised by AI from the source linked above. Methodology and corrections.
