The redemption for SGB 2016-17 Series IV and 2019-20 Series IV is scheduled for March 17 based on the average closing price of 999 purity gold between March 10 and March 13
Investors in the Sovereign Gold Bond (SGB) 2016-17 Series IV and 2019-20 Series IV are set for significant returns, with the Reserve Bank of India (RBI) announcing the final redemption price. The investors’ wealth could swell nearly 3 times on redemption due to skyrocketing gold prices.
The 2016-17 Series IV bonds, issued in February 2017 at Rs 2,943 per gram, will now be redeemed at Rs 8,624 per gram, offering a 193 per cent return. Similarly, investors in the 2019-20 Series IV, issued in September 2019 at the same price, can prematurely redeem the bonds at Rs 8,634 per gram.
The redemption for both series is scheduled for March 17 based on the average closing price of 999 purity gold between March 10 and March 13, this year, as published by the India Bullion and Jewellers Association (IBJA).
How The Redemption Price Is Calculated
The redemption price for early exit is based on the average gold price (999 purity) for the three business days before the redemption date.