SGB 2017-18 Series Matures With Gains Over 316%: Check Redemption Date, Price And Other Details

The Reserve Bank of India (RBI) has announced the final redemption price for the Sovereign Gold Bonds (SGB) 2017-18 Series VI, which reached maturity on Nov. 6, 2025. The SGB 2017-18 Series VI has generated an absolute simple return of nearly 317% for online investors.

Investors holding these bonds will receive a price of Rs 12,066 per unit, marking a substantial gain on the initial investment. The SGBs carry a fixed annual interest rate of 2.5%, credited semi-annually.

As per the RBI press release dated Nov. 4, “in terms of GOI Notification F. No.4(25)-(W&M)/2017 dated October 06, 2017,” the gold bond shall be “repayable on the expiration of eight years from the date of issue of the Gold Bonds.” This sets the final redemption date for the SGB 2017-18 Series VI as Nov. 6, 2025.

The bonds were originally issued on Nov. 6, 2017, with an online purchase price of Rs 2,895 per gram, Rs 50 less than the nominal value for investors who opted for digital payment. Offline buyers paid Rs 2,945 per gram.

The calculation comes to Rs 12,066 (redemption price) minus Rs 2,895 (online issue price), resulting in a profit of Rs 9,171 per unit, which translates to a 316.7% gain. Investors who bought offline at Rs 2,945 per gram have seen slightly lower, but still remarkable, returns.

In addition to capital appreciation, the fixed 2.50% annual interest is credited to the investor’s bank account every six months, with the final instalment payable alongside the principal on maturity.

Holders of the SGB 2017-18 Series VI should verify the tranche of their bonds by checking the issue date and submit their final redemption requests within the specified schedule to ensure a smooth process.

Sovereign Gold Bonds provide a dual benefit: price appreciation of gold and a fixed annual interest. For individual investors, redemption is exempt from capital gains tax if held till maturity. This exemption, though, does not apply to companies, Hindu Undivided Families, or if the bonds are sold on the stock market. The interests earned from SGBs are taxable for all investors.