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, effective on November 30. This comes as a significant update for investors who had initially purchased the bonds at Rs 2,540 per unit with an annual interest rate of 2.75% from the issue date.
During the week starting 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 gold from the Indian Bullion Jewellers Association (IBJA) in the preceding week. Notable subscribers to this series included major banks such as HDFC Bank (NS: HDBK ) Limited and ICICI Bank Ltd . (NS: ICBK )
Investors in these gold bonds are now poised to benefit from a substantial return on their investment as they redeem their holdings at more than double the initial purchase price. This reflects the appreciation in the value of gold over the eight-year term of the bond. The SGB scheme was designed to offer investors an alternative to holding physical gold while earning interest on their investment.
The redemption process will be closely watched by market participants as it provides insights into the performance of gold-linked financial instruments and investor sentiment towards precious metals in India's financial markets.
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