RBI has set the premature redemption price for SGB 2018-19 Series-IV at ₹14,086 for July 1.
Under the Government of India's 2018 notification, the next premature redemption date for investors of Sovereign Gold Bond 2018-19 Series-IV is July 1, 2026. The redemption price per unit has been fixed at ₹14,086, based on the average closing price of 999 purity gold over the last three business days.
Highlights
- RBI has set the premature redemption price for SGB 2018-19 Series-IV at ₹14,086 per unit for July 1, 2026.
- The redemption price is based on the average of closing prices of 999 purity gold published by IBJA on June 25, 29, and 30, 2026.
- This price provides a clear benchmark for cash withdrawal before maturity to investors in SGB 2018-19 Series-IV and serves as a reference point for the markets.
This article was translated from the original. Read the original version by our correspondent here.
Premature Redemption Terms and Pricing
According to the RBI press release, premature redemption of gold bonds under the Sovereign Gold Bond Scheme is permitted after the fifth year from the issue date, on the interest payment date. The issue date for SGB 2018-19 Series-IV is January 1, 2019, so the next premature redemption date for this tranche is set for July 1, 2026.The redemption price is based on the simple average of closing prices of 999 purity gold published by India Bullion and Jewellers Association Ltd, IBJA. For the premature redemption due on July 1, 2026, this average is calculated from the closing prices on June 25, June 29, and June 30, 2026.
Significance for Investors and Markets
The announced price is important for investors who wish to exit SGB 2018-19 Series-IV before maturity. The redemption price of ₹14,086 per unit provides a clear cash-out benchmark for this tranche.The redemption price in the Sovereign Gold Bond scheme is linked to market-based gold prices, ensuring transparent pricing for investors. Such announcements serve as a reference point for both banking and bullion markets.
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