Premature Redemption Price SGB 2016-17 Series IV

Premature redemption price of sovereign gold bond fixed at Rs.5077/unit for SGB 2016-17 Series IV

The price for premature redemption of sovereign gold bond

Due on September 17, 2022 SGB 2016-17 Series IV) has been fixed at Rs 5077 per unit

The RBI issues the bonds on behalf of the Government of India which are sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and NSE and BSE

Premature redemption of Gold Bond is permitted after the fifth year from the date of issue and the due date of SGB 2016-17 Series IV issued on  March 17, 2017

The redemption price of SGB is based on the average closing price of gold of 999 purity

Of the week (Monday-Friday) preceding the date of redemption as published by the India Bullion and Jewellers Association Ltd

Accordingly, the redemption price for due on September 17, 2022 shall be Rs.5077 /- per unit 

SGB based on the simple average of closing gold price for the week September 05-09, 2022

The scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings  used for the purchase of the yellow metal into financial savings

The bonds are denominated in multiples of gram (s) of gold with a basic unit of 1 gram