Investors who bought Sovereign Gold Bonds (SGB) under Series IV of the 2019-20 scheme will see a 193% return if they opt for premature redemption. The bonds were issued on September 17, 2019, at ₹2,943 per gram.

The redemption price for premature withdrawal on March 17, 2025, is set at ₹8,634 per gram.

Key details:

How the redemption price is calculated

The redemption price is based on the simple average of closing gold prices of 999 purity for the three business days before redemption.

The prices are published by the India Bullion and Jewellers Association Ltd. (IBJA).

For this SGB tranche, the average price on March 11, 12, and 13, 2025, determines the redemption value.

Eligibility for premature redemption

SGBs have an eight-year maturity period but allow premature redemption after five years, only on interest payment dates.

Investors in Series IV of the 2019-20 scheme can exit on March 17, 2025.

Why premature redemption matters

Premature redemption allows investors to access liquidity before the bond’s eight-year maturity.

It enables them to capitalise on rising gold prices while maintaining minimal risk to capital.

Redemption process

For premature redemption, investors must approach the concerned bank, SHCIL offices, post office, or agent thirty days before the coupon payment date.

The request must be submitted at least one day before the coupon payment date to be entertained by the concerned authorities.

The proceeds are then credited to the customer’s bank account provided at the time of bond application.