Investing.com | G-Day Editor
Published November 24, 2023, 11:02 a.m. ET
The Reserve Bank of India (RBI) has announced the final redemption price for the first tranche of Sovereign Gold Bonds (SGBs) 2015-I series at Rs 6,132 per unit with effect from November 30. This is an important update for investors who have initially purchased the bonds at Rs 2,540 per unit with an annual interest rate of 2.75% from the date of issue.
In the week beginning Monday, total subscriptions for this SGB tranche reached Rs 246 crore in gold grams. The redemption value is calculated based on the average closing price of Indian Bullion Jewelers Association (IBJA) gold in the previous week. Notable subscribers to this series included major banks like HDFC Bank Limited and ICICI Bank Ltd.
Investors in these gold bonds can now benefit from a significant return on investment as they redeem their holdings at more than double the original purchase price. This reflects the appreciation of gold over the eight-year term of the bond. The SGB program is designed to provide investors with an alternative to owning physical gold while earning interest on their investment.
The redemption process is closely watched by market participants as it provides insights into the performance of gold-linked financial instruments and investor sentiment towards precious metals in the Indian financial markets.
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Written by: Investing.com
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