Sovereign Gold Bond Premature Redemption Calendar: Oct 2024 – Mar 2025

Summary: The Sovereign Gold Bond (SGB) Scheme has announced the schedule for premature redemption for the tranches maturing between October 2024 and March 2025. Investors can submit their redemption requests within specific windows before the bond’s coupon payment date. The SGBs, which are government securities issued by the Reserve Bank of India (RBI) on behalf of the Government of India, offer a secure and convenient way to invest in gold without the need to hold physical gold. The bonds are denominated in grams of gold and have a tenor of eight years, with an exit option available after the fifth year. The redemption price is based on the simple average closing price of gold of 999 purity. Investors who wish to opt for premature redemption must submit their requests to the respective Receiving Offices, NSDL, CDSL, or RBI Retail Direct within the stipulated timeframes to ensure processing. The SGB scheme provides a safe investment option with added benefits such as interest earnings and tax exemptions on capital gains at maturity.

Sovereign Gold Bond (SGB)  Scheme Calendar for premature redemption during October 2024 – March 2025

Sl. No.	Tranche	Issue Date	Date of Coupon payment	Dates for submitting the request for premature redemption by the investors to the Receiving Offices/NSDL/CDSL/RBI Retail Direct
				From	To
1	2017-18 Series I	May 12, 2017	November 12, 2024	October 11, 2024	November 2, 2024
2	2017-18 Series II	July 28, 2017	January 28, 2025	December 27, 2024	January 18, 2025
3	2017-18 Series III	October 16, 2017	October 16, 2024	September 16, 2024	October 7, 2024
4	2017-18 Series IV	October 23, 2017	October 23, 2024	September 23, 2024	October 14, 2024
5	2017-18 Series V	October 30, 2017	October 30, 2024	September 30, 2024	October 21, 2024
6	2017-18 Series VI	November 6, 2017	November 6, 2024	October 5, 2024	October 28, 2024
7	2017-18 Series VII	November 13, 2017	November 13, 2024	October 11, 2024	November 4, 2024
8	2017-18 Series VIII	November 20, 2017	November 20, 2024	October 19, 2024	November 11, 2024
9	2017-18 Series IX	November 27, 2017	November 27, 2024	October 25, 2024	November 18, 2024
10	2017-18 Series X	December 4, 2017	December 4, 2024	November 4, 2024	November 25, 2024
11	2017-18 Series XI	December 11, 2017	December 11, 2024	November 11, 2024	December 2, 2024
12	2017-18 Series XII	December 18, 2017	December 18, 2024	November 18, 2024	December 9, 2024
13	2017-18 Series XIII	December 26, 2017	December 26, 2024	November 26, 2024	December 16, 2024
14	2017-18 Series XIV	January 1, 2018	January 1, 2025	November 30, 2024	December 23, 2024
15	2018-19 Series I	May 4, 2018	November 4, 2024	October 4, 2024	October 25, 2024
16	2018-19 Series II	October 23, 2018	October 23, 2024	September 23, 2024	October 14, 2024
17	2018-19 Series III	November 13, 2018	November 13, 2024	October 11, 2024	November 4, 2024
18	2018-19 Series IV	January 1, 2019	January 1, 2025	November 30, 2024	December 23, 2024
19	2018-19 Series V	January 22, 2019	January 22, 2025	December 21, 2024	January 13, 2025
20	2018-19 Series VI	February 12, 2019	February 12, 2025	January 10, 2025	February 3, 2025
21	2019-20 Series I	June 11, 2019	December 11, 2024	November 11, 2024	December 2, 2024
22	2019-20 Series II	July 16, 2019	January 16, 2025	December 17, 2024	January 6, 2025
23	2019-20 Series III	August 14, 2019	February 14, 2025	January 15, 2025	February 4, 2025
24	2019-20 Series IV	September 17, 2019	March 17, 2025	February 15, 2025	March 7, 2025
25	2019-20 Series V	October 15, 2019	October 15, 2024	September 14, 2024	October 5, 2024
26	2019-20 Series VI	October 30, 2019	October 30, 2024	September 30, 2024	October 21, 2024
27	2019-20 Series VII	December 10, 2019	December 10, 2024	November 8, 2024	November 30, 2024
28	2019-20 Series VIII	January 21, 2020	January 21, 2025	December 21, 2024	January 13, 2025
29	2019-20 Series IX	February 11, 2020	February 11, 2025	January 10, 2025	February 1, 2025
30	2019-20 Series X	March 11, 2020	March 11, 2025	February 7, 2025	March 1, 2025

What is Sovereign Gold Bond

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

Sovereign Gold Bond Scheme

• Sovereign Gold Bond Scheme was launched by Govt in November 2015, under Gold Monetisation Scheme.
• Under the scheme, the issues are made open for subscription in tranches by RBI in consultation with GOI.
• RBI Notifies the terms and conditions for the scheme from time to time.
• The subscription for SGB will be open as per following calendar.
• The rate of SGB will be declare by RBI before every new tranche by issuing a Press Release.
• As per RBI instructions “Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to the investor(s)’’ as the PAN number of the first/ sole applicant is mandatory.
• The Bonds will be restricted for sale to resident Indian entities including individuals (in his capacity as individual, or on behalf of minor child, or jointly with any other individual), HUFs, Trusts, Universities and Charitable Institutions.
• The tenor of the Bond will be for a period of 8 years with exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates.
• Minimum permissible investment will be 1 gram of gold.
• The maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchase from the Secondary Market.
• The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
• 50/- per gram discount than the nominal value to those investors applying online and the payment against the application is made through digital mode.
• In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
• Payment for the Bonds will be through cash payment (up to a maximum of Rs. 20,000/-) or demand draft or cheque or electronic banking.
• Nominations are available. In case the investment is on behalf of minor nomination facility is not available
• The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
• The Gold Bonds will be issued as Government of India Stocks under Government Security Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into Demat form.
• The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity of previous 3 working days published by IBJA.
• All the branches of the State Bank of India are authorised to accept the subscription.
• Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time. The lien on the bond shall be marked in the depository by the authorised banks.
• Note : The loan against SGB Certificate is available.
• Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.

Feature Of Sovereign Gold Bonds, 2015-16

1) Eligibility for Investment   – “Person resident in India”

2 )Form of Security   – issued a Holding Certificate Form ‘C’ The Bonds shall be eligible for conversion into de-mat form.

3) Date of Issue – 26, November ,2015

4) Denomination – Minimum investment in the Bonds shall be 2 grams Maximum subscription of 500 grams

5) Issue Price – simple average closing price for gold of 999 purity

6) Interest – interest at the rate of 2.75 per cent (fixed rate) per annum

7) Receiving Offices – commercial banks and designated Post Offices

8) Payment Options – Payment shall be accepted in Indian Rupees through Cash or Demand Drafts or Cheque or Electronic banking.

9) Redemption –   repayable on the expiration of 8 years from the date of issue. Pre-mature redemption of the Bond is allowed from 5 year fixed in Indian Rupees simple average closing price for gold of 999 purity.

10) Repayment- date of maturity of the Bonds, 1 month before its maturity.

11) Eligibility for Statutory Liquidity Ratio – Investment in the Bonds shall be eligible for SLR.

12) Loan against Bonds – Loan to Value ratio will be as applicable to ordinary gold loan.

13) Tax Treatment- Capital gains tax treatment will be the same as that for physical gold.

14) Applications- Subscription for the Bonds may be made in the prescribed application form (Form ‘A’) Acknowledgment receipt in (Form ‘B’) to the applicant.

15) Nomination- Nomination and its cancellation shall be made in  Form ‘D’ and  Form ‘E’.

16) Transferability  transferable by execution of an Instrument of transfer as in Form ‘F’.

17) Tradability in Bonds – trading from such date as may be notified by the Reserve Bank of India.

18) Commission for distribution – shall be paid at the rate of rupee 100 of the total subscription received at least 50% of the commission so received.

Procedural Guidelines for servicing the bonds as per RBI regulation dated 22^nd October 2021

As per RBI circular IDMD.CDD.1100/14.04.050/2021-22 dated October 22, 2021

 The ROs shall be guided by procedural/operational guidelines in connection with issue/ servicing of these bonds as under:

Nodal Branches/Offices

The applications received at the various branches or offices may be forwarded to the nodal branch/office for further processing after preliminary scrutiny.

Application

• Applications shall be received at branches during normal banking hours on the weeks of subscription as notified by GOI/RBI from time to time. Subscription of the from shall be made in prescribed application Form A.
• Every application must be accompanied by the ‘PAN details’ issued by the Income Tax Department.
• The Investor ID generated from RBI’s E-Kuber is a unique id which is created while applying for SGB.
• While accepting applications, ROs may ascertain from the applicant the details of existing investor ID if any.
• All payments for subscription to SGB shall be accepted in Indian Rupees through cash up to a maximum of Rs.20,000/- or cheque/ demand drafts/electronic banking.
• ROs need to ensure that the application is complete in all respects as incomplete applications are liable to be rejected.
• All online applications should be accompanied by email Id of the investor/s which should be uploaded on the Ekuber portal along with the subscription details.
• On receipt of complete application as above, the ROs shall issue an acknowledgement receipt in Form B.
• No request for cancellation of the bond after closure of the issue shall be entertained under any circumstances
• The ROs are required to enter the data or carry out bulk upload for the subscriptions received by them in RBI’s E-Kuber portal.
• The applicants are eligible for payment of interest on the subscription amount at savings bank rate from the date of application/realisation of fund up to the date of allotment
• The status of application rejected by RBI’s E-Kuber system should be notified by ROs and subscription amount refunded without any delay to the customer
• Any delay on the part of ROs to refund the amount to any applicant, whose application is rejected will attract penalty @ Repo rate +2% for each day of delay.

Allotment of Bonds and Generation of “Certificates of Holding (COH)”:

• The ROs can also download the certificates from RBI’s E-Kuber portal and are required to provide the same to their customers.
• ROs may note that as SGB is transferable/tradable and mere possession of Certificate of Holding should not be construed as proof of title.

Nomination

• The nominations can be indicated by the customer at the time of subscribing to the bonds (in the prescribed Form ‘D’ or at a later date. It is permissible to designate more than one person as nominees (maximum two) to a bond. Nomination facility is not available in case the investment is on behalf of minor.

Cancellation of Nomination: cancellation of an existing nomination in the prescribed Form ‘E’ and while examining the application it may be ensured that –

(i) correct particulars of the Sovereign Gold Bond have been stated in the form; and

(ii) the name/s of the nominee/s has/have been correctly mentioned in the form.

• Additions to existing nomination: The holder can nominate second person, in addition to the existing one.  the RO shall input such requests into the E-Kuber system subject to its satisfaction that the details provided are correct and in order, using the facility provided in the E-Kuber portal. Acknowledgement may also be issued.
• Claims of nominee/s: Government Securities Regulation 2007, subject to its satisfaction with respect to the legality, genuineness, and finality thereof, subject to its satisfaction that there is no rival claim in respect of such bond and on production of all documents required to substantiate the claim. For that purpose it may call for any other document or declaration, as it may consider necessary. It may also require the claimant to furnish a bond of indemnity for such amount as it may think fit, if found necessary.

Forms of holding and dematerialisation

• The applicant can make a specific request either at the time of subscribing to the bond or at a subsequent occasion for crediting of the bond to demat account or holding the bond in gilt account under the Retail Direct Scheme. The process of conversion to demat will be subject to the correctness of details supplied by the applicant, such as name, DP ID, Client ID and acceptance of the record by the Depositories. Care may be taken by ROs to ensure that the name of the investor entered by them in RBI’s portal corresponds with that in the Depositories’ records.
• The ROs shall enter the details in the E-Kuber portal. Such requests will be processed by Mumbai PDO, RBI on a consolidated basis every week and the details will be sent to the Depository as the case may be, for validation. Once the details are validated by the Depository, the bonds will be transferred by PDO Mumbai to Depository for onward credit to the demat accounts of the beneficiaries.
• The holder of SGB may subsequently convert the bonds from BLA to the gilt account under Retail Direct Scheme. The request for the same may be made by the gilt account holder on the Retail Direct Online Portal.
• The holder of SGB may subsequently convert the bonds from BLA to the gilt account under Retail Direct Scheme. The request for the same may be made by the gilt account holder on the Retail Direct Online Portal.
• Timely servicing of all the SGB held in dematerialised form is the responsibility of the respective Depository viz NSDL/CDSL. They shall ensure timely credit of interest and repayment and render customer service to the demat account holders of SGB.
• Accordingly all customer service requests may be uploaded on the Retail Direct Online Portal.

Re-materialisation

• The re-materialisation request may be prepared by the Depository Participant based on the application and may be forwarded to the Depository. The request may be submitted by depository through E-Kuber Portal. No trading will be permitted for the securities sent for re-materialisation. Post conversion, the bonds will be held in BLA with RBI and servicing of the rematerialized bonds shall be done by the RO specified by the investor.

Transfer of Bonds

• The Bonds are issued in the form of Stock Certificate and are therefore transferable before maturity to eligible transferees either wholly or in part by execution of an instrument of transfer in Form’ F’
• In case of bond held in demat account with the NSDL/CDSL, the Beneficial ownership of dematerialised bonds can change either through trading in exchanges /off market transactions as per the extant practice.

Procedure for recording transfer of bonds

• RO for effecting transfer of bonds before maturity from one eligible holder to another, through sale or by way of gift.
• The RO may obtain the Transfer Form duly executed as per Form ‘F’  along with a copy of the Certificate of Holding.
• RO shall cross check the correctness of details given, with the data available on the E-Kuber portal/ their records.
• The KYC details of both the transferor and transferee may be verified by the RO.
• The transfer request may then be processed through the E-Kuber Portal.
• A revised Certificate of Holding may be generated from the E-Kuber Portal and issued to the transferee. The transfer of accounts will not disrupt interest payment schedule and the transferee/ holder will continue to earn interest on the relevant due dates.

Partial transfer of bonds held in stock certificate form:

• In case of part transfer, the original Certificate of Holding shall stand cancelled and new Certificates of Holding may be generated and issued to the transferor and transferee reflecting the changed holding.
• Recognition of title to SGB of deceased sole holder or joint holders and right of survivors of joint holders or several payees
• Recognition of title to a bond of deceased sole holder or joint holders and right of survivors of joint holders or several payees, shall be subject to the provisions of Sections 7 and 8 of the Government Securities Act 2006 read with Regulation 6 of the Government Securities Regulations 2007.
• Once a claim is received by the RO/Depository, as the case may be, it may recognize the claim in terms of Section 7 of the GS Act 2006 and Regulation 6 of the Government Securities Regulation 2007, subject to its satisfaction with respect to the legality, genuineness, and finality thereof, provided there is no rival claim in respect of such bond and on production of all documents required to substantiate the claim. For that purpose, it may call for any other document or declaration, as it may consider necessary. It may also require the claimant to furnish a bond of indemnity for such amount as it may think fit, if found necessary.
• In the event of doubt, the case may be referred to PDO, Mumbai by the ROs/Depository.

Loan against the bonds and creation of pledge, hypothecation or lien

• The bonds may be used as collateral security for any loan.
• The Loan to Value ratio as applicable to any ordinary gold loan mandated by the Reserve Bank of India shall also apply to the bonds.
• The pledge/hypothecation/lien on the bond held in stock certificate form shall be recorded and revoked by the banks providing the loan, in accordance with the provisions of section 28 of GS Act and Chapter VII of GS Regulations, using the facility provided in the E-Kuber portal.
• In case of bonds held with the depositories and in RDG account under RBI Retail Direct Scheme, the lien is marked by the CSGL holder in line with the practice followed for other stocks and shares which are accepted as collateral by the banks.
• In the event of the bank invoking the pledge/hypothecation/lien, after initiating the necessary entry In E-Kuber, the authorisation request for transfer of the bonds to the bank may be submitted to PDO, Mumbai through E- mail in accordance with the provisions of Chapter VII, Regulation 21 of the Government Securities Regulation 2007, with additional supporting documents including court order, if any.

Payment of Interest

• The interest on the bonds, as applicable, shall be paid on a half yearly basis.
• The amount will be credited by RBI to the bank account of the holder of bonds in case of bond held in BLA and RDG Account through electronic means on the date on which the interest is payable.
• Where the bonds are held with the depositories, the interest amount will be disbursed through depositories, who will arrange to credit the amount to the bank accounts of the holders through electronic means on the due date.
• In case, it is not possible to accord credit to the account of the beneficiary due to closure of bank account or otherwise, destination banks shall return the transaction to PDO Mumbai/RBI within two hours of completion of the batch in which the transaction was processed along with details of UTR number.

Repayment of Bonds

• The investor about the date of maturity of the Bond 1 month before its maturity.
• The Bond shall be repayable on the expiration of 8 years from the date of issue of the bond.
• No claim needs to be submitted to RBI for the purpose by the investors.
• Premature redemption of the bonds is permitted after 5 year from the date of issue of such bond, on the date on which the next interest is payable.

Payment of brokerage

• ROs may by their own, appoint agents for increasing subscription of Sovereign Gold Bonds.
• Commission for distribution to such agents shall be paid at the rate of rupee one per hundred of the total subscription received by the ROs on the applications received and ROs shall share at least 50% of the commission so received with the agents or sub-agents for the business procured through them.
• Change of address, correction of name, change of account number and other miscellaneous requests in case of bonds held in the form of stock certificates.
• The requests of the customer in case of bonds held in the form of BLA with RBI supported by the Certificate of Holding may be processed by the ROs through the E-Kuber portal after verification of the particulars and subject to their satisfaction. The ROs may call for additional documents if deemed necessary.
• The requests may be entered by ROs in the RBI portal for giving effect to the changes.

Preservation of Records

• The application forms and other requests may be preserved by the ROs/ Depositories till the maturity of the bond.
• Premature redemption request may be preserved for 3 years from the date of payment of proceeds.