When is the last date to invest in Sovereign Gold Bonds (SGB) 2023-24 Series II

The Reserve Bank of India (RBI) has launched the new tranche of Sovereign Gold Bond (SGB). The government has fixed the price of SGB Series II at Rs 5,923. One can avail discount up to Rs 50 for applying online and making the payment against the application through digital mode.

Also read: Latest Sovereign Gold Bond tranche open for subscription; Where to buy these bonds, how to invest in SGB online

When is the last date to invest in Sovereign Gold Bonds 2023-24 (Series II)

The subscription period for the SGB Series II will run from September 11–15, 2023. So September 15, 2023 is the last date to invest in SGB Series II.


How is price on SGB calculated
The nominal value of the bond is Rs 5,923 based on the simple average of closing prices for gold with a purity of 999 published by the India Bullion and Jewellers Association Ltd (IBJA) for the last three working days of the week prior to the subscription period, i.e. September 6, 7, and 8, 2023.

Click here to find out Sovereign Gold Bond Scheme 2023-24 Series II issue price

Redemption on maturity
When the SGB mature, they will be redeemed in Indian Rupees. The redemption price is determined by the simple average of the closing price of 999-purity gold over the previous three business days as announced by the India Bullion and Jewellers Association Limited.

The bank account the consumer provided when purchasing the SGB will get credit for both interest and redemption profits.

Redemption before maturity
Although the bond has an 8-year term, early redemption is permitted after the fifth year from the date of issue on coupon payment days. If held in Demat form, the bond will be tradable on exchanges. It can also be transferred to another qualifying investor. According to the Bank of India website, “In case of premature redemption, investors can approach the concerned branch thirty days before the coupon payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond.”

SGB details
Sovereign Gold Bonds are government securities denominated in grams of gold. They are alternatives for physical gold. Investors must pay the issue price, and the bonds will be redeemed at maturity. The bond is issued by the Reserve Bank of India on behalf of the Government of India. he Bonds bear interest at the rate of 2.50 per cent per annum on the amount of initial investment.