RBI sets Rs 14,167 redemption price for SGB 2021-22 Series VII
Investors can opt for early redemption of the gold bond tranche from November 2, 2026, according to Moneycontrol.
The Reserve Bank of India has announced a premature redemption price of Rs 14,167 per unit for the Sovereign Gold Bonds (SGB) 2021-22 Series VII. According to Moneycontrol, investors can choose to redeem this tranche early from November 2, 2026.
The redemption price was calculated using the simple average of the closing prices of 999-purity gold for three business days: October 28, October 29, and October 30, 2026. These prices are published by the India Bullion and Jewellers Association Ltd.
The SGB 2021-22 Series VII was originally issued in November 2021. For those who applied online and used digital payment modes, the issue price was Rs 4,715 per gram, while the offline issue price was Rs 4,765 per gram.
With the fixed redemption price of Rs 14,167 per gram, the bond will deliver an absolute return of approximately 200.47 per cent, excluding interest income. This represents a gain of Rs 9,452 per gram for digital mode investors.
The RBI stated that premature redemption is permitted after the fifth year from the date of issue on an interest payment date. The bonds were initially issued on November 2, 2021.