Gold bond premature redemption: SGB 2021-22 Series VII investors, here's how much you will get per unit on November 2

Investors who purchased Sovereign Gold Bonds (SGB) 2021-22 Series VII are approaching an important date. The Government of India has announced a premature redemption price of ₹14,167 per unit for this tranche, with redemption due on November 2, 2026. Investors who bought these gold bonds in October 2021 can now check how much their investment has appreciated over the last five years.

According to the Ministry of Finance, the premature redemption facility for SGB 2021-22 Series VII will be available on November 2, 2026, as the tranche completes five years from its original issue date.

The government has fixed the redemption price at ₹14,167 per unit, based on the simple average of the closing prices of 999-purity gold during the previous three business days.

How was the SGB redemption price of ₹14,167 calculated?

The Ministry of Finance confirmed that the redemption price for premature redemption due on November 2, 2026, will be ₹14,167 per unit of Sovereign Gold Bond.

How much profit will SGB Series VII investors make?

The Sovereign Gold Bond 2021-22 Series VII was originally issued at ₹4,765 per gram during its subscription window from October 25 to October 29, 2021.

Investors who applied online and made payments through digital mode received a discount of ₹50 per gram, bringing the effective issue price down to ₹4,715 per gram.

With the redemption price now fixed at ₹14,167, investors can calculate their price appreciation as follows:

This translates into a price appreciation of approximately 197.3% for investors who purchased at the regular issue price and around 200.7% for those who received the digital payment discount.

These figures represent capital appreciation only and do not include the interest earned during the investment period.

According to the Ministry of Finance's announcement dated October 23, 2021, the Sovereign Gold Bond 2021-22 Series VII was offered at an issue price of ₹4,765 per gram during the subscription period from October 25 to October 29, 2021.

The government, in consultation with the Reserve Bank of India (RBI), also approved a discount of ₹50 per gram for investors who applied online and made payments through digital mode.

The Ministry of Finance stated, "For such investors the issue price of Gold Bond will be ₹4,715 per gram of gold."

When can investors prematurely redeem SGB Series VII?

How much interest will SGB investors receive?

Apart from the appreciation in gold prices, Sovereign Gold Bonds carry an annual interest rate of 2.5% on the initial investment amount, payable half-yearly, subject to the scheme's applicable terms.

This interest is separate from the redemption amount and adds to the overall returns earned by investors.

SGB premature redemption calendar for October 2026-March 2027 released: Check all exit dates