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Sovereign Gold Bond: RBI's Premature Redemption For 2017 Series 3 Offers 212% Return For Investors

  • Investors holding Series III of the Sovereign Gold Bond issued on October 16, 2017, can prematurely redeem their SGBs on April 16, according to the RBI circular.
  • The redemption price for this series has been fixed at Rs 9,221 per unit of gold bonds, resulting in a 212% gain over the bond issue price.
  • The premature withdrawal option is available as per the terms outlined in the RBI notification issued on Oct. 6, 2017, allowing investors to access liquidity before the bonds reach their full maturity.
  • The Sovereign Gold Bond Scheme allows for the premature redemption of gold bonds after the fifth year from the date of issue, providing investors an opportunity to benefit from favorable market conditions or address urgent financial requirements.

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