Investors holding the Sovereign Gold Bond (SGB) 2016-17 Series II, issued on September 30, 2016, will see the final redemption of their bonds today. The redemption price is set at ₹7,517 per gram, based on the simple average of gold prices from September 23 to September 27, 2024, as published by the India Bullion and Jewellers Association Ltd (IBJA).
Investors who purchased this SGB at its original issue price of ₹3,119 per gram in 2016 will realise a profit of ₹4,398 per gram on redemption.
This represents an approximate 141% return on their investment over the eight-year period.
This calculation excludes the annual interest rate of 2.50% paid biannually during the bond’s tenure.
Investors will automatically receive the redemption proceeds in their registered bank accounts linked to the Demat or bond certificate.
No action is required if the bank details are updated. In case the details need updating or for investors holding physical certificates, they should contact their bank or agent before the redemption date.
Advantages of investing in SGB
Investing in Sovereign Gold Bonds offers several advantages:
Tax benefits: The capital gains from SGBs are exempt from tax at redemption, adding to the net returns for investors.
Security and ease: SGBs provide a secure and convenient way to invest in gold without the hassles associated with physical gold.
Government backing: As government securities, they offer an added layer of security and stability.
No action is required if the bank details are updated. In case the details need updating or for investors holding physical certificates, they should contact their bank or agent before the redemption date.
Advantages of investing in SGB
Investing in Sovereign Gold Bonds offers several advantages:
Tax benefits: The capital gains from SGBs are exempt from tax at redemption, adding to the net returns for investors.
Security and ease: SGBs provide a secure and convenient way to invest in gold without the hassles associated with physical gold.
Government backing: As government securities, they offer an added layer of security and stability.
First Published: Sept 30, 2024 10:26 AM IST
Published by CNBC TV
