Investors in the SGB 2016-17 Series III scheme of Sovereign Gold Bond can redeem their assets in November at a 159% higher value along with accumulated interest.
SGB 2016-17 Series III scheme redemption date
According to the Reserve Bank of India, investors in the SGB can redeem their bond units after eight years of the beginning of the scheme. As per the RBI bulletin, bonds issued under SGB 2016-17 Series III scheme can be redeemed at a fixed rate on November 16.
SGB 2016-17 Series III scheme redemption price
The redemption price for the final redemption of the SGB 2016-17 Series III scheme, due on November 16, should be ₹7,788 per unit of SGB based on the simple average of closing gold price for the week of November 04-08, 2024, said RBI in a press release issued on November 8.
SGB 2016-17 Series III scheme redemption price
The SGB bonds were issued in the year 2016-2017 at the closing price of gold of 999 purity on 17th November 2016. “The nominal value of Gold Bonds shall be in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the week (Monday to Friday) preceding the subscription period,” said RBI in its press release issued in 2016. The SGB unit under the scheme was issued at a price of ₹3,007 per gram, according to the Economic Times.
What is an SGB?
Sovereign Gold Bonds are government securities issued to buyers for a fixed period. The securities are issued in denominations in grams of gold. At the time of SGB scheme’s issuance, investors pay the issue price in cash and they can redeem these bonds in cash on maturity. The RBI issues these bonds on behalf of the Government of India.
Under SGB 2016-17 Series III scheme, buyers received interest on half-yearly basis and the last interest will be payed along with the principal on maturity. The SGB will had a fixed rate of interest at 2.50 per cent per annum on the nominal value, according to RBI.
