The Reserve Bank of India announced the redemption price for premature redemption of the Sovereign Gold Bond (SGB) 2019-20 Series IV, which is due on September 17, 2026. This announcement provides clarity for bondholders considering early exit from their investments in the series, which was issued as part of the government’s gold bond scheme.
The RBI detailed the redemption price calculation based on the simple average of closing prices of gold of 999 purity, published by the India Bullion and Jewellers Association Limited, for the last three business days preceding the date of redemption. This method ensures that the redemption price reflects the current market value of gold, providing a transparent and fair mechanism for bondholders.
The Sovereign Gold Bond scheme is a government initiative aimed at reducing physical gold demand and encouraging investment in financial assets linked to gold. The 2019-20 Series IV is one of several tranches issued over the years, and the premature redemption option allows investors to liquidate their holdings before maturity under specified conditions. This move aligns with the government’s broader strategy to manage gold imports and stabilize the domestic gold market.
The redemption price for premature redemption of the SGB 2019-20 Series IV will be effective from September 17, 2026, as per the RBI’s official press release. Investors holding these bonds can access the detailed pricing information on the RBI website to make informed decisions.