This gold bond series has given 225% return on early exit: What to do if you missed the window
Published on 05/06/2025 09:57 AM
This gold bond series has given 225% return on early exit: What to do if you missed the windowThose who missed the June 4 redemption window will need to wait for the next opportunity. As per RBI rules, premature redemption is allowed only after the fifth year and only on interest payment dates — which occur semi-annually.By Anshul June 5, 2025, 9:57:08 AM IST (Updated)2 Min ReadThe premature redemption window for the Sovereign Gold Bond (SGB) 2017-18 Series X closed on June 4, 2025. Investors who had opted for early redemption on this date received ₹9,630 per unit, based on the average gold price of 999 purity for May 30, June 2, and June 3, as published by the India Bullion and Jewellers Association Ltd (IBJA).
This particular tranche was issued on December 4, 2017, at a price of ₹2,961 per gram.
That means investors earned a return of over 225% in less than eight years, excluding the annual interest of 2.5% offered on the bond’s face value.
What should investors do now?
Those who missed the June 4 redemption window will need to wait for the next opportunity. As per RBI rules, premature redemption is allowed only after the fifth year and only on interest payment dates — which occur semi-annually.
The next redemption opportunity for this tranche will fall on the next scheduled interest payout date.
Investors can also hold the bond till maturity — which for this tranche is December 4, 2025 — to receive the full value along with the final interest payment.
SGBs are credited and redeemed through the demat account or registered bank account linked to the investor's bond holdings.
No physical submission is needed if the investor's bank details and PAN are correctly updated with the RBI or agent bank.
It must be noted that the government in Union Budget 2025 discontinued fresh issuances of the Sovereign Gold Bond scheme.
However, existing bonds remain active and will be redeemed on schedule or on eligible early redemption dates.Continue ReadingFirst Published: Jun 5, 2025 9:54 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsgoldGold BondsSovereign Gold Bond