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SGB Term

Maturity Date

The date when an SGB completes its tenure and is redeemed by RBI

Quick Definition

The date when an SGB completes its tenure and is redeemed by RBI

Complete Explanation

Maturity Date is the date when a Sovereign Gold Bond completes its 8-year tenure and is redeemed by the Reserve Bank of India.

On maturity: - The bond is redeemed at prevailing gold price - Redemption price = Simple average of closing price of gold (999 purity) of previous 3 business days - Amount is credited to investor's linked bank account - Capital gains are completely TAX-FREE

Important dates related to SGB maturity: - Issue Date: When the SGB was originally issued - Maturity Date: Issue Date + 8 years - Early Exit Date: After 5 years from issue date (on interest payment dates only)

Knowing maturity date helps in: - Planning investment horizon - Calculating years to maturity - Comparing different SGB series

Examples

  • 1SGB issued on March 15, 2020 matures on March 15, 2028
  • 2If gold price on maturity is ₹7,000/gram, you receive ₹7,000 per unit
  • 3Maturity proceeds are tax-free capital gains

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