The Reserve Bank of India (RBI) has announced the early redemption price for the Sovereign Gold Bond (SGB) 2019-20 Series IV, originally issued on September 17, 2019. This follows recent redemption updates for SGB 2020-21 Series VI and SGB 2019-20 Series X.
Redemption Price Fixed at ₹11,003 per Gram
The early redemption price has been set at ₹11,003 per gram, based on the average closing price of gold (999 purity) published by the India Bullion and Jewellers Association (IBJA) on September 12, 15, and 16, 2025.
Key Details of the Tranche
- Subscription Period: September 9–13, 2019
- Issue Date: September 17, 2019
- Tenure: 8 years (with exit allowed after 5 years, only on interest payout dates)
Return on Investment
- Initial Issue Price (2019): ₹3,890 per gram
- Redemption Price (2025): ₹11,003 per gram
- Capital Gain (Excl. Interest): ₹7,113 per gram
- Absolute Return: ~183% over 6 years
In addition, investors earned a fixed interest of 2.5% per annum, payable semi-annually, with the final interest credited along with the redemption proceeds.
What Should Investors Do?
If you hold units of SGB 2019-20 Series IV, you are eligible for early redemption during this cycle. To proceed:
- Confirm your bond series and issue date.
- Submit a redemption request through your bank, Demat account provider, or broker before the stipulated deadline.
Summary
The RBI has fixed the early redemption price of SGB 2019-20 Series IV at ₹11,003 per gram, delivering investors an impressive 183% return in six years, excluding interest income. Eligible investors can now exit this tranche by submitting redemption requests via their respective banks or intermediaries.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.