Investors holding the Sovereign Gold Bond (SGB) 2020-21 Series-IV can opt for premature redemption on July 14, 2025, as it marks the completion of the mandatory 5-year lock-in period. The Reserve Bank of India (RBI) has fixed the redemption price at ₹9,688 per gram.
Originally issued in July 2020 at ₹4,852 per gram, this SGB series has delivered an impressive absolute gain of ₹4,836 per gram. This translates to a return of approximately 99.67% over the 5-year period, excluding the annual 2.5% fixed interest paid semi-annually on the principal investment.
The redemption price is derived from the average closing price of 999 purity gold on the Indian bullion market, specifically for the business days of July 9, 10, and 11, as reported by the India Bullion and Jewellers Association (IBJA).
Investors wishing to redeem must do so through the original channel of investment, whether a demat account, a bank, or a post office. A redemption request should be submitted at least 10 days prior to the interest payout date. In this case, the deadline would have been July 4, 2025, to qualify for the July 14 redemption.
Those who miss the current window will need to wait for the next half-yearly interest date, which occurs every six months from the original issue date.
While the Union Budget 2025 officially halted fresh issuances of Sovereign Gold Bonds, all existing series will continue to function as scheduled. Investors can still redeem bonds on maturity or on eligible early redemption dates, as outlined by the RBI.
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.
Published on: Jul 14, 2025, 9:28 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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