The Reserve Bank of India has announced the SGB premature redemption price for Sovereign Gold Bond 2018-19 Series IV. Investors eligible for early exit on July 1, 2026, will receive ₹14,086 per unit. This update is important for bondholders planning their redemption.
SGB Premature Redemption Price Details
The RBI calculated the redemption price using the simple average of gold’s closing price for three business days. These days were June 25, June 29, and June 30, 2026. The price is based on 999 purity gold rates published by the India Bullion and Jewellers Association Ltd (IBJA).
Therefore, the final SGB premature redemption rate stands at ₹14,086 per unit. This applies specifically to SGB 2018-19 Series IV, originally issued on January 1, 2019. Investors should note this price is fixed and applies only to the July 1, 2026, redemption date.
Who Is Eligible and What This Means for Investors
Under the Government of India notification dated October 8, 2018, premature redemption is allowed after the fifth year from the issue date. Additionally, redemption is only permitted on dates when interest is payable. As a result, July 1, 2026, becomes the next valid premature redemption window for this tranche.
However, investors who do not redeem early can continue to hold their bonds until maturity. Meanwhile, those choosing to exit early will receive the announced price directly into their registered bank accounts. This makes the process straightforward and transparent for bondholders.
For example, an investor holding 10 units would receive ₹1,40,860 upon premature redemption. This reflects strong gold price appreciation since the bonds were issued in January 2019. Therefore, early redemption may be a financially attractive option for many holders of this series.
Key Takeaway for SGB 2018-19 Series IV Holders
The SGB premature redemption price of ₹14,086 per unit offers investors a clear benchmark for their decision. Additionally, the IBJA-based pricing mechanism ensures a fair and market-linked valuation. Investors should contact their bank or holding institution well before July 1, 2026, to initiate the redemption process smoothly.
Source: RBI Press Releases
