SGB Halted Amid Gold Price Rally: What Should Investors Do Next? Check Premature Exit Calendar And How To Process – News18
Last Updated:
The Indian government introduced the Sovereign Gold Bond (SGB) Scheme in 2016, offering tax-free gains and 2.5% interest. Paused due to rising prices, it ran until 2024.
SBI Premature Redemption Calendar: Full List of Tranches Available for Exit. (AI Generated)
SGB 2025: The Indian government, led by Prime Minister Narendra Modi, introduced the Sovereign Gold Bond (SGB) Scheme in 2016 as an alternative investment to physical gold. This scheme offered investors tax-free capital gains with a 2.5 per cent annual interest. Investors would pay the initial amount in cash and receive the maturity amount in cash as well.
However, due to rising gold prices, the Indian government has paused the SGB scheme and no new tranches have been announced. The scheme ran from 2016 to 2024.
One attractive feature of the SGB scheme is the option for investors to exit after 5 years, before the maturity period. The Reserve Bank of India (RBI) allows this premature exit. Investors must submit a form within the stipulated time frame, which varies depending on the tranche.
The pause of SGB scheme amidst the rising prices of yellow metal, hitting the record highs.
SGB Premature Redemption Calendar: Tranche-Wise Exit Timeline Announced
The Sovereign Gold Bond (SGB) Scheme, as per the Reserve Bank of India’s guidelines, allows for premature redemption of bonds after 5 years from the date of issuance.
| S No | Tranche | Issue Date | Date of premature redemption | Dates for submitting the request for premature redemption by the investors to the Receiving Offices/NSDL/CDSL/RBI Retail Direct | |
| From | To | ||||
| 1 | 2017-18 Series III | 16-Oct-17 | 16-Apr-25 | 17-Mar-25 | 7-Apr-25 |
| 2 | 2017-18 Series IV | 23-Oct-17 | 23-Apr-25 | 24-Mar-25 | 15-Apr-25 |
| 3 | 2017-18 Series V | 30-Oct-17 | 30-Apr-25 | 31-Mar-25 | 21-Apr-25 |
| 4 | 2017-18 Series VI | 6-Nov-17 | 6-May-25 | 5-Apr-25 | 28-Apr-25 |
| 5 | 2017-18 Series VII | 13-Nov-17 | 13-May-25 | 11-Apr-25 | 3-May-25 |
| 6 | 2017-18 Series VIII | 20-Nov-17 | 20-May-25 | 19-Apr-25 | 13-May-25 |
| 7 | 2017-18 Series IX | 27-Nov-17 | 27-May-25 | 25-Apr-25 | 17-May-25 |
| 8 | 2017-18 Series X | 4-Dec-17 | 4-Jun-25 | 5-May-25 | 26-May-25 |
| 9 | 2017-18 Series XI | 11-Dec-17 | 11-Jun-25 | 9-May-25 | 2-Jun-25 |
| 10 | 2017-18 Series XII | 18-Dec-17 | 18-Jun-25 | 19-May-25 | 9-Jun-25 |
| 11 | 2017-18 Series XIII | 26-Dec-17 | 26-Jun-25 | 27-May-25 | 16-Jun-25 |
| 12 | 2017-18 Series XIV | 1-Jan-18 | 1-Jul-25 | 31-May-25 | 21-Jun-25 |
| 13 | 2018-19 Series I | 4-May-18 | 3-May-25 | 3-Apr-25 | 23-Apr-25 |
| 14 | 2018-19 Series II | 23-Oct-18 | 23-Apr-25 | 24-Mar-25 | 15-Apr-25 |
| 15 | 2018-19 Series III | 13-Nov-18 | 13-May-25 | 11-Apr-25 | 3-May-25 |
| 16 | 2018-19 Series IV | 1-Jan-19 | 1-Jul-25 | 31-May-25 | 21-Jun-25 |
| 17 | 2018-19 Series V | 22-Jan-19 | 22-Jul-25 | 21-Jun-25 | 14-Jul-25 |
| 18 | 2018-19 Series VI | 12-Feb-19 | 12-Aug-25 | 11-Jul-25 | 2-Aug-25 |
| 19 | 2019-20 Series I | 11-Jun-19 | 11-Jun-25 | 9-May-25 | 2-Jun-25 |
| 20 | 2019-20 Series II | 16-Jul-19 | 16-Jul-25 | 16-Jun-25 | 7-Jul-25 |
| 21 | 2019-20 Series III | 14-Aug-19 | 14-Aug-25 | 15-Jul-25 | 4-Aug-25 |
| 22 | 2019-20 Series IV | 17-Sep-19 | 17-Sep-25 | 18-Aug-25 | 8-Sep-25 |
| 23 | 2019-20 Series V | 15-Oct-19 | 15-Apr-25 | 15-Mar-25 | 5-Apr-25 |
| 24 | 2019-20 Series VI | 30-Oct-19 | 30-Apr-25 | 31-Mar-25 | 21-Apr-25 |
| 25 | 2019-20 Series VII | 10-Dec-19 | 10-Jun-25 | 9-May-25 | 31-May-25 |
| 26 | 2019-20 Series VIII | 21-Jan-20 | 21-Jul-25 | 21-Jun-25 | 11-Jul-25 |
| 27 | 2019-20 Series IX | 11-Feb-20 | 11-Aug-25 | 11-Jul-25 | 1-Aug-25 |
| 28 | 2019-20 Series X | 11-Mar-20 | 11-Sep-25 | 12-Aug-25 | 1-Sep-25 |
| 29 | 2020-21 Series I | 28-Apr-20 | 28-Apr-25 | 29-Mar-25 | 19-Apr-25 |
| 30 | 2020-21, Series II | 19-May-20 | 19-May-25 | 19-Apr-25 | 9-May-25 |
| 31 | 2020-21, Series III | 16-Jun-20 | 16-Jun-25 | 17-May-25 | 6-Jun-25 |
| 32 | 2020-21, Series IV | 14-Jul-25 | 14-Jul-25 | 13-Jun-25 | 4-Jul-25 |
| 33 | 2020-21, Series V | 11-Aug-20 | 11-Aug-25 | 11-Jul-25 | 1-Aug-25 |
| 34 | 2020-21, Series VI | 8-Sep-20 | 8-Sep-25 | 8-Aug-25 | 29-Aug-25 |
SGB Redemption Process Redemption Amount: Upon maturity, the Gold Bonds will be redeemed in Indian Rupees. The redemption price is calculated based on the simple average of the closing price of 999 purity gold for the previous 3 business days, as published by the India Bullion and Jewellers Association Limited.
Redemption Payment: Both the earned interest and the redemption amount are directly credited to the investor’s bank account linked to the bond.
Redemption Procedure: Investors receive a notification one month before the maturity date. On the maturity date, the proceeds are automatically credited to the registered bank account. Any changes in account details, such as bank account number or email address, must be communicated to the concerned bank/SHCIL/PO promptly.
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.
Should You Wait For Maturity Or Exit Prematurely?
According to a CNBC TV18 report, Trivesh D, COO of Tradejini, suggests that investors might consider exiting SGBs if they require immediate funds or if better investment opportunities arise. However, he highlights that holding SGBs until maturity can be advantageous due to the 2.5 per cent annual interest and tax-free capital gains.
SGB Alternative Investment Option
Trivesh stated that several alternatives exist for investors given the current pause on SGBs. He suggests Gold ETFs as a suitable option, combining ease of use with high liquidity. Other options include gold mutual funds and digital gold.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
