Are You Holding SGB 2019-20 Series V: Premature Redemption on April 15

Investors holding the Sovereign Gold Bond (SGB) 2019-20 Series V now have the option to redeem their bonds early, with the redemption price set at ₹9,069 per gram. This follows the SCB’s first premature redemption date on Tuesday, April 15, 2025. 

Since its launch on October 15, 2019, at ₹3,788 per gram, the SGB has yielded a return of 139% over 5.5 years, excluding the annual interest payout. 

It’s important to note that the 2.5% annual interest, paid semi-annually, further enhances the returns for those who choose to hold the bond until maturity, making the overall investment even more profitable. 

Why is Early Redemption Allowed? 

According to the rules of the Sovereign Gold Bond Scheme, investors can redeem their bonds after five years from the date of issue. 

While the bonds have a full maturity period of eight years, ending on October 15, 2027, the early redemption option offers flexibility for investors who want to cash out early or need liquidity. 

How is the Redemption Price Determined? 

The redemption price is based on the average closing prices of 999 purity gold for the last three working days before the redemption date, as published by the India Bullion and Jewellers Association (IBJA). For today’s redemption, the price has been set at ₹9,069 per gram, derived from the average closing prices on April 8, 9, and 11, 2025. 

About SGBs 

SGBs are government-backed bonds that provide returns linked to the price of gold. With the ongoing rise in domestic gold prices, the Union Budget 2025 announced the cessation of new Sovereign Gold Bond issuances. However, existing bonds will continue to be active and can be redeemed according to their scheduled or eligible early redemption dates. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.