RBI Announces Early Redemption Price for Sovereign Gold Bond 2019-20 Series IV

Following the recent redemption announcements for SGB 2020-21 Series VI and SGB 2019-20 Series X, the Reserve Bank of India (RBI) has declared the early redemption price for the Sovereign Gold Bond (SGB) 2019-20 Series IV, originally issued on September 17, 2019.

According to the Government of India’s guidelines, SGBs have a tenure of eight years, but investors are allowed to exit after the fifth year, only on interest payout dates.

For this tranche, the early redemption price has been set at ₹11,003 per gram, calculated as the average of gold prices (999 purity) published by the India Bullion and Jewellers Association (IBJA) on September 12, 15, and 16, 2025.

Key Dates and Subscription Details

• Subscription Period: September 9 to 13, 2019
• Issue Date: September 17, 2019

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: Approx. 183% over 6 years

In addition to capital gains, SGBs offer a fixed interest rate of 2.5% per annum, paid semi-annually on the initial investment. The final interest payment is made along with the redemption amount.

Also Read: RBI Sets Up New Mechanism to Review Regulations Periodically

What Should Investors Do?

If you hold the SGB 2019-20 Series IV (Issue Date: September 17, 2019), you are eligible for early redemption during this cycle. To proceed:

1. Verify your bond series and issue date.
2. Submit your redemption request through your bank, Demat provider, or broker before the stipulated deadline.

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.

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