SGB 2021-22 Series VII Premature Redemption (Image Source: Pixabay)
\n\nInvestors holding Sovereign Gold Bonds (SGBs) 2021-22 Series VII will get an opportunity to redeem their investments before maturity on November 2, 2026. The Reserve Bank of India (RBI) has announced a premature redemption price of Rs 14,167 per gram for this tranche, which was originally issued in November 2021. The announcement comes as the bonds complete five years from their date of issuance, making them eligible for early redemption under the applicable rules.
\n\nInvestors who purchased these bonds at the time of the original issue could potentially book substantial gains, given the appreciation in gold prices over the holding period.
\n\nBesides the capital appreciation, SGB investors are also entitled to fixed interest payments.
\n\nThe RBI has scheduled November 2, 2026, as the premature redemption date for Sovereign Gold Bonds 2021-22 Series VII. The tranche was initially issued on November 2, 2021.
\n\nAs per the RBI's press release dated October 30, investors can exercise the premature redemption option after completing five years from the bond's issuance date, provided the redemption takes place on an interest payment date.
\n\nThe central bank stated: “Premature redemption of Gold Bond may be permitted after fifth…
Original source: https://www.timesnownews.com/business-economy
