Latest news with #SovereignGoldBond
Time of India
05-05-2025
- Business
- Time of India
Sovereign Gold Bond 2017-18 series VI yields over 220% return in 7.5 years; RBI fixes premature redemption price at Rs 9,453 per gram on May 6
Investors holding the Sovereign Gold Bond (SGB) 2017-18 Series VI, issued on November 6, 2017, will be eligible for premature redemption on May 6, 2025, at a price of Rs 9,453 per gram, as notified by the Reserve Bank of India. Tired of too many ads? go ad free now This marks a gain of around 221% on the original issue price of Rs 2,945 per gram (or Rs 2,895 for investors), over a holding period of seven and a half years. In an official statement on Monday, the RBI said, 'The redemption price for premature redemption due on May 06, 2025 shall be Rs 9,453/- (Rupees Nine Thousand Four Hundred and Fifty-Three only) per unit of SGB based on the simple average of closing gold price for the three business days i.e., April 30, May 02 and May 05, 2025.' Earlier, according to the RBI the was priced at Rs 2,945 per gram, based on the average closing price of gold of 999 purity from October 25 to 27, 2017. Investors who applied online and paid digitally had received a Rs 50 discount, bringing the effective issue price to Rs 2,895 per gram. The was launched in 2015 by the Government of India, in consultation with the RBI, as a financial alternative to physical gold investment. Bonds are issued in denominations of one gram of gold or multiples thereof, and are tradable and eligible for conversion to dematerialised form. Each tranche is open for limited subscription windows and comes with a fixed interest rate of 2.50% per annum, paid semi-annually. Capital gains on redemption are tax-free for individual investors, and the bonds can also be used as collateral for loans. Redemption of SGBs is allowed after the fifth year from the date of issue, but only on the next interest payment date. The final maturity is after eight years. The redemption price is linked to the market value of gold and is based on the simple average of closing prices of gold of 999 purity, according to the RBI.
Time of India
03-05-2025
- Business
- Time of India
Sovereign Gold Bond final redemption: Investors to earn 221% returns on maturity as RBI announces final price for SGB 2017-18 Series I; check details
SGB 2017-18 Series I: What is the final redemption price? SGB 2017-18 Series I: Issue price Live Events SGB 2017-18 Series I: How much profit did investors make? Tax-free maturity amount on SGB What are Sovereign Gold Bonds? Can a Minor invest in SGB? The Reserve Bank of India (RBI) has announced the final redemption price of Sovereign Gold Bond (SGB) 2017-18 Series I. The final redemption is due on May 9, 2025. The SGB bond was issued in May 2017. The SGB is repayable on the expiration of eight years from the date of issue of the Gold Bonds. Accordingly, the final redemption date of the above tranche shall be May 9, gold bond holders of this issue have hit a jackpot as the gold prices has been hitting new highs in the domestic market. Recently, gold prices touched Rs 1 lakh per 10 grams (24K) in some read: Sovereign Gold Bond 2025: RBI announces SGB premature redemption dates from April – September 2025; Check details According to the Reserve Bank of India press release dated May 2, 2025, the redemption price for the final redemption due on May 09, 2025 (May 12, May 11 and May 10 being holidays) shall be Rs 9486/- per unit of SGB based on the simple average of closing gold price for the week April 28, 2025 - May 02, 2025. (May 01, 2025, being a holiday).The final redemption price of SGB is calculated based on the simple average of closing price of gold of 999 purity of three working days of the previous week (Monday to Friday) as published by the India Bullion and Jewellers Association issue price for SGB 2017-18 Series I in May 2017 was fixed at Rs. 2951 per gram. Investors who made purchase online are eligible for discount of Rs 50 on the issue price. For them, the applicable issue price will be Rs 2901/- (Rs 2951- 50 = 2901/-).Also read: Fresh SGB issuance unlikely: How much will you gain if you buy Sovereign Gold Bonds from stock market The Sovereign Gold Bond (SGB) 2017-18 Series I, issued on May 12, 2017, had an issue price of Rs 2,951 per gram. The final redemption price as per RBI is Rs 9486. The SGB is due for redemption on May 9, absolute terms, an investor has earned a return of 221% over eight years without considering the interest the investor would have earned annual interest of 2.5% per annum on their gold bond maturity amount received by the SGB holder will be tax-exempt. Suppose you invested Rs 1,47,550, based on the issue price of Rs 2,951, to get 50 grams of gold. On maturity, you will get Rs 4,74,300 based on the final price of Rs 9, you get the gains of Rs 3,26,750 RBI issues Sovereign Gold Bonds (SGBs) as government securities on behalf of the Indian government. These bonds are denominated in grams of gold and provide an alternative to holding physical gold while offering periodic FAQs on SGBThere may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/ joint holding is The application on behalf of the minor has to be made by his/her guardian.
News18
27-04-2025
- Business
- News18
Sovereign Gold Bond Scheme: Investors To Get 109% Return, SGB Redemption At Rs 9,600 Due Tomorrow
The Reserve Bank of India set the premature redemption price for the Sovereign Gold Bond Scheme, Series I of 2020-21, at Rs 9,600 per unit. SGB Premature Redemption: The Reserve Bank of India (RBI) has disclosed the premature redemption price for the Sovereign Gold Bond (SGB) Scheme, Series I of 2020-21. This redemption will take place on April 28, 2025. According to the Government of India's notification, SGBs are eligible for premature redemption five years after the issuance date, which for this series is April 28, 2020. SGB investors Are Enjoying Returns Exceeding 109% The premature redemption price has been determined at Rs 9,600 per unit, based on the average closing price of gold of 999 purity for the three business days prior to the redemption date — specifically April 23, 24, and 25, 2025 — as reported by the India Bullion and Jewellers Association Ltd (IBJA). The redemption price for the SGB Scheme 2020-21, Series I Tranche 38, represents a return of more than 109% compared to its issue price of Rs 4,589 (Rs 4,639 minus Rs 50 discount) for investors who purchased the scheme online. What Is Sovereign Gold Bonds (SGBs)? Sovereign Gold Bonds (SGBs) offer investors a digital avenue to invest in gold while earning interest, making them a compelling choice for those seeking the security and consistent returns associated with gold. Investors can opt for premature redemption of SGBs after a period of 5 years from the bond issuance date. SGB Premature Redemption Schedule (April 2025 – September 2025) SGB Early Redemption Process – How To Apply While the bond tenure is 8 years, investors can choose to redeem their bonds prematurely after 5 years from the issue date on any coupon payment date. Investors seeking premature redemption must approach their respective bank/SHCIL office/Post Office/agent 30 days prior to the coupon payment date. The request will be processed only if submitted at least one day before the coupon payment date. Tradability: Bonds held in demat form can be traded on exchanges and transferred to eligible investors. For detailed information, investors are advised to refer to the Consolidated Procedural Guidelines on the Sovereign Gold Bond (SGB) Scheme issued by the Reserve Bank of India. tags : SGB Location : New Delhi, India, India First Published: April 27, 2025, 14:52 IST News business » savings-and-investments Sovereign Gold Bond Scheme: Investors To Get 109% Return, SGB Redemption At Rs 9,600 Due Tomorrow
Time of India
26-04-2025
- Business
- Time of India
SGB premature exit: Get 109% tax free returns on this Sovereign Gold Bond investment if applied for premature redemption on April 28, 2025
The Reserve Bank of India has opened the premature redemption window for Sovereign Gold Bond (SGB) Series I 2020-21 investors. This particular SGB can be prematurely withdrawn at Rs 9,600 per bond. This translates into a return of Rs 5,011, since this particular SGB (SGB202101) was issued 5 years ago at Rs 4,589 per bond. In absolute percentage terms this SGB is giving 109.1959% return in this particular April 2025 premature redemption window. In light of these facts, 109.19% absolute return from gold investment in five years is very attractive, especially when you consider that individuals don't need to pay any capital gains tax on this income at all. #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" Hence if you wish to opt for this premature withdrawal of SGB 2020-21 Series I then note its due on April 28, 2025. The deadline to opt for premature withdrawal will be closed before the interest on such SGB is paid. Interest on SGBs are paid on a semi-annual basis i.e. twice a year. On this particular SGB 2020-21, the interest is 2.5% per annum. The ISIN number of this particular SGB is IN0020200062. How SGB investment gains are non-taxable but interest is not? Under the structure of SGBs, the government has given capital gains tax exemption on redemption of SGBs only to individuals. But the 2.5% annual interest given on such SGBs are taxable in all investor's hands including individuals. Moreover, if you sell the SGBs on secondary markets (stock market) then it's not tax free and you need to pay the applicable capital gains tax. This is because sale of SGBs in the stock market (secondary markets) is regarded as transfer of SGBs and not redemption. Redemption of SGBs can only happen through the specified RBI buyback windows. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. How SGB 2020-21 Series I is giving 109.19% absolute return in the April 2025 premature redemption window In a press release dated April 25, 2025, the Reserve Bank of India said: 'The redemption price of SGB shall be based on the simple average of closing gold price of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA). Accordingly, the redemption price for premature redemption due on April 28, 2025, shall be Rs 9,600/- (Rupees Nine Thousand Six Hundred only) per unit of SGB based on the simple average of closing gold price for the three business days i.e., April 23, April 24, and April 25, 2025.' Calculations: Live Events April 2025 premature redemption price: Rs 9,600 Issue price on April 24, 2020: Rs 4,589 Income of SGB 2020-21 Series I redeemed at the April 2025 premature redemption window: Rs 9,600-4,589= Rs 5,011 Absolute return percentage: Rs 5,011/4589*100%= 109.19% 'Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after the fifth year from the date of issue on coupon payment dates. The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal,' as per a frequently asked question (FAQ) by the RBI.
