Sovereign Bold Bonds earn over 200% returns: RBI announces redemption price for some SGBs – check details

Sovereign Bold Bond (SGB) redemption: Bought sovereign gold bonds in 2017 or 2018? You are in for excellent news because the RBI introduced the redemption costs for the SGBs, providing a return of over 200%.The Reserve Bank of India (RBI) introduced the redemption price for two sovereign gold bond tranches due for untimely redemption on July 1. Investors holding the SGB 2017-18 Series-XIV and SGB 2018-19 Series-IV shall be getting Rs 9,628 per unit of SGB.Even although the tenure for these gold bonds is 8 years, they permit for untimely redemption after the fifth yr from the date of problem.Calculating the SGB redemptionAccording to the RBI press launch issued on June 30, the redemption price is calculated as the easy common of closing gold price of 999 purity for the earlier three enterprise days from the redemption date, as printed by the India Bullion and Jewellers Association Ltd (IBJA).For this cycle, the related dates have been June 26, 27 and 30, ET reported.SGB 2017-18 Series-XIVThose who invested within the SGB 2017-18 Series XIV in January 2018 at Rs 2,831 per gram are getting nearly 240% return.SGB 2018-19 Series-IVThe SGB 2018-19 Series IV, issued a yr later in January 2019 at Rs 3,119 per gram, has yielded a rise of over 208%. This implies that buyers could be getting Rs 6,509, in case they selected to choose to withdraw prematurely.This charge doesn’t account for the fastened 2.5% curiosity provided yearly.Interest providedThe bonds carry an rate of interest of two.5% each year, paid semi-yearly. This is credited on to the investor’s checking account and is along with the capital appreciation. The last curiosity payout is made together with the principal on maturity or redemption.How to redeem SGBAs prematurelyIdentifying the bond tranche by checking the difficulty date to find out once they turn out to be eligible for untimely redemption. They ought to then submit the redemption request earlier than the deadline specified within the schedule to make sure well timed processing. Investors shall be notified one month prematurely in regards to the upcoming maturity of their SGBs. On the maturity date, the proceeds shall be immediately credited to the checking account registered with the issuing authority. In case there are any adjustments in private details similar to checking account quantity or e mail ID, you will need to promptly replace this info with the financial institution, SHCIL, or submit workplace to keep away from any details.