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SGB 2019-20 Series V Redemption Price Set at Rs 14,725 Delivering 294% Gain
M
Moneycontrol•14-10-2026, 21:52
SGB 2019-20 Series V Redemption Price Set at Rs 14,725 Delivering 294% Gain
- •The Reserve Bank of India has fixed the premature redemption price for Sovereign Gold Bond 2019-20 Series V at Rs 14,725 per unit.
- •Early redemption for this tranche will be available starting October 15, 2026, based on the average closing gold prices.
- •Investors who applied online and used digital modes will achieve an absolute simple return of around 294 percent, excluding interest.
- •An initial investment of Rs 1 lakh at the time of issuance would grow to approximately Rs 3.94 lakh upon premature redemption.
- •Recent tax rule changes mean premature redemption will be taxed, even for investors who subscribed during the primary issuance.
Key Questions Answered
The Reserve Bank of India has fixed the premature redemption price for SGB 2019-20 Series V at Rs 14,725 per unit, which is scheduled for redemption on October 15, 2026.
The redemption price is determined by taking the simple average of the closing price of 999 purity gold over the previous three business days before the redemption date, as published by the India Bullion and Jewellers Association Ltd.
Under tax rules revised from April 1, premature redemption will now be taxed even for investors who subscribed during the primary issuance.
