RBI Fixes Premature Redemption Price for SGB 2018-19 Series VI at ₹15,102

The Reserve Bank of India (RBI) has fixed the premature redemption price for the Sovereign Gold Bond (SGB) 2018-19 Series VI at ₹15,102 per unit. This means investors who bought the bond at the issue price of ₹3,276 will see a substantial gain.

The RBI calculates the premature redemption price by taking the simple average of the closing prices of 999-purity gold for the three preceding business days. In this case, the prices are based on rates published by the India Bullion and Jewellers Association (IBJA).

Investors who bought the bond at the discounted issue price of ₹3,276 stand to make an absolute gain of ₹11,826 per unit, which translates into a return of about 361.1% from gold price appreciation alone.