Now Reading: RBI sets SGB 2019-20 Series IV premature redemption at ₹15,173
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RBI sets SGB 2019-20 Series IV premature redemption at ₹15,173
The Reserve Bank of India has fixed the premature redemption price of Sovereign Gold Bond 2019-20 Series IV at ₹15,173 per unit for September 17, 2026. The price is based on the…
The Reserve Bank of India has fixed the premature redemption price of Sovereign Gold Bond 2019-20 Series IV at ₹15,173 per unit for September 17, 2026. The price is based on the simple average closing price of 999-purity gold on September 11, 15 and 16, as published by the India Bullion and Jewellers Association.
Investors who bought online at ₹3,840 per gram, a ₹50 discount on the ₹3,890 issue price, have seen an absolute gain of 295%. A ₹1 lakh investment would now be worth approximately ₹3.95 lakh, excluding the 2.5% annual interest paid semi-annually. The tranche was issued on September 17, 2019, and premature redemption is allowed after five years on an interest payment date.
Indian Opinion Analysis
The coverage is uniform straight reporting. The RBI's press release supplied the official redemption price and formula. Economic Times and Mint both reproduced that data and then independently calculated the 295% absolute return for a ₹1 lakh online investment, adding context the official release omitted: the discounted issue price (₹3,840) and the implied ₹3.95 lakh value. Mint went further by flagging the capital-gains tax exemption change from April 2026, which applies only to maturity redemptions, not premature exits. Investors holding this tranche now face a concrete choice: exit at ₹15,173 on September 17 or wait a year for maturity and potentially lose the tax exemption.
Coverage: 3 sources, 3 neutral
Sources (3): rbi.org.in (neutral report), economictimes.indiatimes.com (neutral report), livemint.com (neutral report)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 3 sources.
