Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Jay-Z Becomes The Richest Hip-Hop Mogul As His Net Worth Soars To $2.5 Billion!

    March 25, 2023

    “Mere Kaan Bajj Rahe Hai”

    March 25, 2023

    Ajay Devgn-Tabu starrer Auron Mein Kahan Dum Tha is expected to release around Diwali 2023, says producer Shreyans Hirawat : Bollywood News

    March 25, 2023
    Facebook Twitter Instagram
    Facebook Twitter Instagram
    Forbes Magazine
    Subscribe
    • Home
    • Bollywood
    • Hollywood
    • Entertainment

      “Mere Kaan Bajj Rahe Hai”

      March 25, 2023

      Shah Rukh Khan-Inspired Sand Portrait Made By A Pakistani Artist Goes Viral Days After Pak Senator Slammed Mahira Khan For Expressing Her Admiration For The Superstar!

      March 25, 2023

      Salman Khan Follows Aishwarya Rai Bachchan On Instagram? He Follows 2 Of His Ex-Girlfriends, But Your Guess Is As Good As Ours!

      March 24, 2023

      Anushka Sharma, Virat Kohli’s 34 Crore Worth Luxurious House Interior Has Jewel-Toned Couches, Tropical Plants & Much More

      March 24, 2023

      Anushka & Virat merge their non-profit initiatives to help those in need

      March 23, 2023
    • Interviews
    • Lifestyle

      Kindle, Kobo, Nook, iPad – The Hollywood Reporter

      December 8, 2022

      ‘KPOP’ Closing on Broadway in December – The Hollywood Reporter

      December 7, 2022

      1-800 Baskets, Wiliams Sonoma – The Hollywood Reporter

      December 6, 2022

      Armageddon Time, Bones and All Costume Designers on Bringing ‘80s Style Back – The Hollywood Reporter

      December 5, 2022

      Keke Palmer Announces Pregnancy in ‘SNL’ Opening Monologue – The Hollywood Reporter

      December 4, 2022
    • Business

      JPMorgan Chase CEO Jamie Dimon is getting involved in rescuing banks again

      March 25, 2023

      What Makes Powerful Passports In The World

      March 25, 2023

      How to stop doubting yourself?

      March 24, 2023

      What To Consider Before Applying For A Citizenship/Residence By Investment Scheme

      March 24, 2023

      Things CBI Investors Should Know About The Schengen Area

      March 24, 2023
    Forbes Magazine
    Home»Business»RBI Sets October 2022-March 2023 Timeline For Premature Redemption of Sovereign Gold Bonds
    Business

    RBI Sets October 2022-March 2023 Timeline For Premature Redemption of Sovereign Gold Bonds

    AuthurBy AuthurOctober 17, 2022No Comments4 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The Reserve Bank of India (RBI) has released dates for the premature withdrawal of Sovereign Gold Bonds (SGB) issued under different tranches. SGBs are available for premature redemption through RBI’s buyback window from the 5th year onwards of the respective bonds.

    The dates for premature redemption of every SGB that falls on October 1, 2022, till March 31, 2023, were published by the RBI in a release dated October 14.

    Source: RBI

    Do You Wish To Prematurely Withdraw Your SGBs? Know Your Options

    An SGB is a type of gold bond issued by the central government and hence has a sovereign guarantee behind it. Each SGB is issued for an eight-year term, and interest upon it is paid semi-annually. Currently, the interest rate stands at 2.5 per cent. If you have bought an SGB, and wish to sell it before the full term or eight years, then you have two options.

    Option A: Secondary Market Transfer

    You can sell the SGBs at the stock market if you have them in demat format; otherwise, you will have to convert the SGBs into demat format first and then try to sell the SGBs in the open market. However, note if you choose this option, then the incidence of taxation arises, and the price for SGBs will not be the same as the price you bought it for.

    “The bonds can be held in demat account. A specific request for the same must be made in the application form itself. Till the process of dematerialization is completed, the bonds will be held in RBI’s books. The facility for conversion to demat will also be available subsequent to allotment of the bond,” the RBI said in its answer to a frequently asked question.

    The price for secondary market trading of SGBs will be lower than the price you bought the SGB because of various factors, including the time value of money since these are long-term bonds with a fixed timeframe lock-in, no market maker to stabilise the price, demand-supply mismatch, and other factors.

    Option B: RBI Buyback Redemption

    If you wish to hold the SGB till maturity or at least till the 5th year of the SGB, then you have the option of selling it at the prevailing gold prices and in a tax-free manner through the specified RBI buyback window.

    When selling the bonds in secondary markets, you are transferring the ownership of the said SGB to another person or entity. But when you sell the bonds in option B, i.e., through RBI’s buyback window, you redeem the SGBs.

    “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,” mentioned the RBI in a FAQ.

    So if you want to go with option B, approach your concerned bank, post office, agent, or others from whom you bought the SGBs and ensure there are at least 30 days before the interest payment for the specific SGB.

    “In case of premature redemption, investors can approach the concerned bank/SHCIL offices/post office/agent thirty days before the coupon payment date,” said the RBI.

    However, the RBI has specified in a FAQ that no request for premature redemption will be accepted if it is not given at least one day before the interest coupon payment.

    “Requests for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day 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,” added the RBI.

    So if you want to go with option B, then approach your concerned bank or post office or agent or others from whom you bought the SGBs and make sure there is at least 30 days time before the interest payment for the specific SGB.

    “In case of premature redemption, investors can approach the concerned bank/SHCIL offices/post office/agent thirty days before the coupon payment date,” said the RBI.

    However, the RBI has specified in a FAQ that no request for premature redemption will be accepted if it is not given at least one day before the interest coupon payment.

    “Requests for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day 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,” added the RBI.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous Article“Alia Is The Hailey Of That Situation”
    Next Article Deepika Padukone becomes the only Indian woman in ‘Top 10 Most Beautiful Women’ list as per Golden Ratio of Beauty : Bollywood News
    Authur
    • Website

    Related Posts

    JPMorgan Chase CEO Jamie Dimon is getting involved in rescuing banks again

    March 25, 2023

    What Makes Powerful Passports In The World

    March 25, 2023

    How to stop doubting yourself?

    March 24, 2023

    What To Consider Before Applying For A Citizenship/Residence By Investment Scheme

    March 24, 2023

    Leave A Reply Cancel Reply

    Demo
    Our Picks
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    Hollywood

    Jay-Z Becomes The Richest Hip-Hop Mogul As His Net Worth Soars To $2.5 Billion!

    By AuthurMarch 25, 20230

    Jay-Z’s net worth soars to $2.5 billion ( Photo Credit – Wikimedia ) Hip-hop mogul…

    “Mere Kaan Bajj Rahe Hai”

    March 25, 2023

    Ajay Devgn-Tabu starrer Auron Mein Kahan Dum Tha is expected to release around Diwali 2023, says producer Shreyans Hirawat : Bollywood News

    March 25, 2023

    JPMorgan Chase CEO Jamie Dimon is getting involved in rescuing banks again

    March 25, 2023

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    Forbes Magazine
    Facebook Twitter Instagram
    • Home
    • Business
    • Entertainment
    • Lifestyle
    © 2023 Forbes Magazine.

    Type above and press Enter to search. Press Esc to cancel.