The calendar covers SGBs issued during 2019-20, 2020-21 and 2021-22. However, investors need to act within the request window specified for their tranche. Here is what SGB holders need to know.
When can an SGB be redeemed prematurely?
SGBs mature after eight years, but RBI rules permit premature redemption after five years from the date of issue. Such redemption is allowed on the dates specified by the central bank.
The latest calendar covers 10 tranches from 2019-20, 12 from 2020-21 and 10 from 2021-22.
What is the first redemption date in the new calendar?
The first eligible tranche is SGB 2019-20 Series V, with premature redemption scheduled for October 15, 2026. Investors must submit requests between September 14 and October 5, 2026.
The calendar runs until March 17, 2027, when 2019-20 Series IV is scheduled for redemption. Its request window is February 12 to March 8, 2027.
How do you redeem an SGB before maturity?
First, identify the exact SGB series in your portfolio and match it with RBI’s calendar.
Next, note both the premature redemption date and the corresponding request window. The request has to be submitted during this period through the applicable Receiving Office or, depending on how the bond is held, through NSDL, CDSL or RBI Retail Direct.
Investors holding SGBs through a bank or another authorised intermediary should check the procedure with that institution.
What happens if you miss the request window?
Missing the specified window means the investor cannot use that particular premature redemption opportunity. The holder would need to wait for a subsequent eligible redemption date or continue holding the bond towards maturity.
How is the redemption price determined?
Under the SGB framework, the redemption value is linked to the prevailing market price of gold. The redemption price is based on the simple average closing price of gold of 999 purity for the previous three working days, as published by the India Bullion and Jewellers Association.
Can RBI change these dates?
Yes. The RBI has cautioned that dates in the calendar can change because of unscheduled holidays. Investors planning an early exit should therefore check the latest RBI notification before placing their request.
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