Watch Out For The Latest Premature Redemption Dates For SGBs

A snapshot of the latest SGB premature redemption timeline declared by the RBI and other SGB redemption-related information.

Sovereign Gold Bonds

Sovereign Gold Bond (SGB) investors would know that these instruments come with a tenure of eight years, with an option to redeem after five years. The Reserve Bank of India (RBI) announces the redemption window once every six months. 

RBI recently declared the dates of premature redemption for various SGB tranches. These dates lie between 1 October 2023 and 31 March 2024. 

  • SGBs can be redeemed prematurely after five years
  • The SGB premature redemption timeline is declared once in six months
  • Various series of SGB 2016-17, 2017-18 and 2018-19 can be redeemed in the coming days
  • SGBs can be redeemed by approaching the concerned bank, post office, agent or SHCIL office

 

SGB Tranches That Can Be Redeemed Prematurely 

The premature redemption window for each SGB tranche will be open for roughly 20 days. 

  • SGB 2016-17 Series I to IV will be up for redemption on the following dates – 

    • 5 January 2024, 

    • 29 February 2024, 

    • 17 October 2023 and 

    • 17 February 2024 respectively 

  • SGB 2017-18 Series I to XIV will be up for redemption on the following dates – 

    • 12 October 2023, 

    • 28 December 2023, 

    • 16 September 2023, 

    • 23 September 2023, 

    • 30 September 2023, 

    • 6 October 2023, 

    • 13 October 2023, 

    • 20 October 2023, 

    • 27 October 2023, 

    • 4 November 2023, 

    • 10 November 2023, 

    • 18 November 2023, 

    • 24 November 2023 and 

    • 1 December 2023 respectively

  • SGB 2018-19 Series I to VI will be up for redemption on the following dates – 

    • 4 October 2023,

    • 23 September 2023,

    • 12 October 2023,

    • 1 December 2023,

    • 22 December 2023,

    • 12 January 2024 

Also Read: Portfolio Diversification: Gold Gave Good Returns Last Year – Why Not Add Sovereign Gold Bonds To Make Your Portfolio Shine? 

Other SGB Redemption-related Information

Here are a few facts about SGB redemption and transferability that you must know as an SGB investor –

  • Apart from the option to redeem the SGB after five years, you can trade it in the exchanges if you hold it in demat form

  • For premature redemption, you can approach the concerned bank/post office/agent or Stock Holding Corporation office 30 days before the coupon payment date

  • Premature redemption request is entertained only when you approach the concerned office/person at least a day before the coupon payment date

  • The redemption amount is transferred to the bank account that you provided at the time of the SGB application

  • Capital gain tax is exempt on SGB redemption for individuals 

 

Conclusion

SGBs are a safe gold investment option where you can invest from one gram onwards. Apart from the appreciation of gold price, you enjoy an assured interest income of 2.5% per annum. You can sell it in the stock market anytime, or go for the premature redemption option as and when the dates are announced. 

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Also Read: Sovereign Gold Bonds (SGBs) 2023-24 Issuance Dates Released By RBI. Read All Key Details

 

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