Now Reading: RBI fixes SGB 2019-20 Series III redemption price at Rs 15,310 per unit
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RBI fixes SGB 2019-20 Series III redemption price at Rs 15,310 per unit
RBI fixes SGB 2019-20 Series III redemption price at Rs 15,310 per unit
The Reserve Bank of India has set the premature redemption price for Sovereign Gold Bond 2019-20 Series III at Rs 15,310 per unit, effective August 14, 2026. The price is based on…
The Story in Brief
The Reserve Bank of India has set the premature redemption price for Sovereign Gold Bond 2019-20 Series III at Rs 15,310 per unit, effective August 14, 2026. The price is based on the simple average of closing prices for 999-purity gold on August 11, 12, and 13, as published by the India Bullion and Jewellers Association.
Investors who bought the bond at the issue price of Rs 3,449 (online) have seen an absolute gain of nearly 344% in seven years, excluding the 2.5% annual interest. A Rs 1 lakh investment is now worth about Rs 4.44 lakh. However, Livemint reports that from April 1, 2026, capital gains tax exemption on SGB redemption applies only on holding until maturity, not on premature exits.
The Indian Opinion
Headlines hailing 344% gains obscure the tax twist that now eats into premature redemptions. Many retail investors may have missed the fine print: exemption is lost if you exit early, even after the lock-in. The government gains twice, on taxes and borrowing costs. The real test is not today's price, but how many investors understood that holding to maturity is the only tax-free exit.
Sources (2): rbi.org.in, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
