RBI sets final redemption price of SGB 2018-19 Series-III at ₹14,024 per unit

RBI sets final redemption price of SGB 2018-19 Series-III at ₹14,024 per unit
SGB final redemption price announcement

The 2018-19 Series-III tranche of the Sovereign Gold Bond Scheme is due for final redemption on November 13, 2026, upon completion of its eight-year term. Investors in this tranche will receive ₹14,024 per unit, based on the average closing price of 999-purity gold over the three business days preceding the redemption date.

Highlights

  • RBI set the final redemption price of SGB 2018-19 Series-III at ₹14,024 per unit, payable on November 13, 2026.
  • This redemption price is based on the three-day simple average of the closing rates for 999-purity gold on November 10, 11, and 12, 2026.
  • The pre-determined calculation of the redemption price offers investors transparency and assurance of a payment linked to market prices.

This article was translated from the original. Read the original version by our correspondent here.

Redemption price and calculation basis

According to the Reserve Bank of India's press release, the final redemption of SGB 2018-19 Series-III, issued under the Government of India's notification dated October 8, 2018, will take place on November 13, 2026. This tranche was issued on November 13, 2018, and under the scheme's rules, gold bonds are repaid after completing eight years from the date of issue.

The final redemption price has been set at ₹14,024 per unit. It is based on the simple average of the closing prices of 999-purity gold published by the India Bullion and Jewellers Association Ltd for the three business days of November 10, 11, and 12, 2026.

Significance for investors and the market

This announcement is directly relevant to investors holding bonds in this particular series, as it clarifies the amount they will receive at maturity. Setting the redemption price according to a pre-determined formula provides transparency for investors and confirms a payment structure linked to the market price of gold.

The Sovereign Gold Bond Scheme serves as an alternative to physical gold, offering investors a government-backed instrument with market-based valuation. The final redemption of this series is a routine stage in the maturity process for gold-linked retail investment products under the current framework.

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