Bought SGB at ₹3,499? Redemption price is ₹15,310 today; see your profit

Investors holding Sovereign Gold Bond (SGB) 2019-20 Series III will receive the premature redemption amount on Friday, August 14, 2026, if they had submitted their redemption request during the specified window. The Reserve Bank of India (RBI) has fixed the premature redemption price at ₹15,310 per unit for the tranche issued on August 14, 2019.

The three business days considered for this redemption are August 11, August 12 and August 13, 2026.

What RBI says on premature redemption

Under the Sovereign Gold Bond scheme, investors can exit their bonds prematurely after completing five years from the date of issue, subject to redemption being allowed on the interest payment date.

The RBI has stated that the redemption price is determined using the average gold price for the three preceding business days.

For SGB 2019-20 Series III, the issue date was August 14, 2019, making August 14, 2026 the applicable premature-redemption date.

How much profit will investors book?

The SGB 2019-20 Series III was issued at ₹3,499 per gram. Investors applying online and making payment through digital mode received a ₹50 discount, taking their effective issue price to ₹3,449 per gram.

At the redemption price of ₹15,310, an investor holding one SGB unit will therefore see the following capital gain:

SGB investors also receive interest at 2.5% per annum on the initial investment, paid semi-annually. Therefore, investors who held the bond through the entire period and received all scheduled interest payments would have earned an additional return.

One SGB tranche left for redemption in August

The next and final tranche for the month is SGB 2021-22 Series V, which is due for premature redemption on August 17, 2026. The redemption request window for this tranche was from July 17 to August 7, 2026.