Source: RBI
The Government of India has announced the redemption price for the premature withdrawal of the Sovereign Gold Bond (SGB) 2019-20 Series-V tranche. Investors who opt for early redemption on the upcoming due date of October 15, 2025, will receive ₹12,394 per unit.
Redemption Price Calculation
In line with the established guidelines, the redemption price of an SGB is determined by the simple average of the closing gold price of 999 purity for the three business days preceding the redemption date. The price is published by the India Bullion and Jewellers Association Ltd (IBJA).
For the redemption due on October 15, 2025, the calculation was based on the closing gold prices on the following dates:
- October 10, 2025
- October 13, 2025
- October 14, 2025
This averaging resulted in the final premature redemption price of ₹12,394 (Rupees Twelve Thousand Three Hundred Ninety Four only) per unit.
Premature Redemption Rules
The Sovereign Gold Bond Scheme includes a provision for early redemption, which can be exercised by the investor after the fifth year from the date of issue.
- Scheme Tranche: SGB 2019-20 Series-V
- Issue Date: October 15, 2019
- Eligibility for Premature Redemption: Permitted after the fifth year on the interest payment date.
- Next Due Date: The upcoming window for premature redemption for this specific tranche is October 15, 2025.
Investors holding bonds from this series now have a clear figure for their potential returns should they choose to exit the investment before its full maturity period of eight years.
Author
