Gold bond up for premature redemption today: Price nearly 4x higher than issue level
April 15, 2026
Sovereign Gold Bonds 2019 20 Series V deliver nearly 296% returns on premature redemption, RBI sets price, new tax rules alter capital gains benefits.
Sovereign Gold Bonds 2019 20 Series V deliver nearly 296% returns on premature redemption, RBI sets price, new tax rules alter capital gains benefits.
By Anshul
Investors in Sovereign Gold Bonds (SGB) 2019-20 Series V are set to realise gains of about ₹11,221 per unit on premature redemption due on Wednesday (April 15), based on the notified redemption price of ₹15,009.
The tranche was issued on October 15, 2019, at ₹3,788 per unit, implying a return of nearly 296% over the period, excluding the 2.5% annual interest paid separately under the scheme.
The Reserve Bank of India (RBI) has fixed the redemption price at ₹15,009 per unit, calculated as the simple average of closing gold prices (999 purity) for the three preceding business days—April 9, April 10 and April 13, 2026—as published by the India Bullion and Jewellers Association (IBJA).
Under the scheme’s rules, investors can opt for premature redemption after completing five years from the date of issuance, on designated interest payment dates. SGBs have a total maturity period of eight years and aim to provide exposure to gold prices in financial form while reducing reliance on physical gold.
Separately, tax rules for SGBs have changed from April 1. Capital gains tax exemption on redemption at maturity will now apply only to investors who subscribed during the primary issuance and hold the bonds until maturity. Investors who purchased SGBs from the secondary market will not be eligible for tax-free redemption, even if held to maturity.
ALSO READ | Gold, silver edge higher as easing oil prices and global risk sentiment shape trade
Note To Readers
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.
By Anshul
Investors in Sovereign Gold Bonds (SGB) 2019-20 Series V are set to realise gains of about ₹11,221 per unit on premature redemption due on Wednesday (April 15), based on the notified redemption price of ₹15,009.
The tranche was issued on October 15, 2019, at ₹3,788 per unit, implying a return of nearly 296% over the period, excluding the 2.5% annual interest paid separately under the scheme.
The Reserve Bank of India (RBI) has fixed the redemption price at ₹15,009 per unit, calculated as the simple average of closing gold prices (999 purity) for the three preceding business days—April 9, April 10 and April 13, 2026—as published by the India Bullion and Jewellers Association (IBJA).
Under the scheme’s rules, investors can opt for premature redemption after completing five years from the date of issuance, on designated interest payment dates. SGBs have a total maturity period of eight years and aim to provide exposure to gold prices in financial form while reducing reliance on physical gold.
Separately, tax rules for SGBs have changed from April 1. Capital gains tax exemption on redemption at maturity will now apply only to investors who subscribed during the primary issuance and hold the bonds until maturity. Investors who purchased SGBs from the secondary market will not be eligible for tax-free redemption, even if held to maturity.
ALSO READ | Gold, silver edge higher as easing oil prices and global risk sentiment shape trade
Note To Readers
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.