How to apply for a premature redemption of SGB?
The Sovereign Gold Bond (SGB) has a tenor of 8 years. However, it can be redeemed prematurely after the 5th year from the issue date or when notified by the Reserve Bank of India.
As per RBI’s recent press release on August 23, 2024, 30 SGB tranches issued between FY 2017-18 to FY 2019-20 are now eligible for early redemption (For details regarding tranche and application dates please click here)
To redeem the SGB prematurely, follow the steps given below:
- Visit or contact your nearest Kotak Securities branch. You may locate it by clicking here
- Ask for the Mutual Fund Redemption Form – Annexure HA and fill in the necessary details along with signatures.
- Pay a redemption fee of ₹32 or 0.04% of the redemption value (whichever is higher) + 18% GST.
- Submit the physical form complete with all details and signatures at least one day prior to submitting a request for premature redemption, as per the dates mentioned in the RBI circular. (Hyperlink to press release)
- Alternatively, you may request the branch to courier you the Mutual Fund Redemption Form – Annexure HA, which is to be duly filled and sent back to the branch at least one day prior to submitting a request for premature redemption, as per the dates mentioned in the RBI circular.
Please ensure there are no active liens on your SGB holding before you place a request for early redemption. The request for early redemption will be processed only if the forms are received at least 10 working days before the coupon payment date (Refer to RBI circular for actual date). The proceeds from the redemption will be credited to the bank account linked to your Kotak Securities Demat Account. For details regarding tranche and application dates please visit here