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SGB early exit paid Rs 9,630/unit — over 200% returns from 2017 tranche; next window opens on Jun 11

SGB early exit paid Rs 9,630/unit — over 200% returns from 2017 tranche; next window opens on Jun 11

Investors can submit premature redemption requests for Sovereign Gold Bonds (SGBs) during designated periods. These bonds offer advantages over other gold investments, including fixed interest rates and tax benefits.

Business Today Desk
Business Today Desk
  • Updated Jun 7, 2025 4:19 PM IST
SGB early exit paid Rs 9,630/unit — over 200% returns from 2017 tranche; next window opens on Jun 11Investors can submit premature redemption requests via receiving offices, NSDL, CDSL or RBI Retail Direct during designated periods.

The Reserve Bank of India (RBI) has outlined procedures for the premature redemption of Sovereign Gold Bonds (SGBs), offering investors a structured exit option through receiving offices, NSDL, CDSL, or RBI Retail Direct during designated periods. SGBs can be redeemed prematurely after the fifth year from issuance, but only on interest payment dates which occur every six months. 

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The upcoming early redemption opportunity is scheduled for June 11, 2025, for the SGB 2019-20 Series I. The last early redemption window for SGB 2017-18 Series X  closed on June 4, 2025, with investors receiving Rs 9,630 per unit. This amount was based on the average gold price of 999 purity for May 30, June 2, and June 3, as reported by the India Bullion and Jewellers Association Ltd (IBJA).

The SGB 2017-18 Series X was initially issued on December 4, 2017, at a price of Rs 2,961 per gram. Investors have seen a return of over 225% in less than eight years, excluding the annual interest of 2.5% offered on the bond's face value.

No. Tranche Issue Date Premature Redemption Date
1 2017-18 Series X December 4, 2017 June 4, 2025
2 2017-18 Series XI December 11, 2017 June 11, 2025
3 2017-18 Series XII December 18, 2017 June 18, 2025
4 2017-18 Series XIII December 26, 2017 June 26, 2025
5 2017-18 Series XIV January 1, 2018 July 1, 2025
6 2018-19 Series I May 4, 2018 May 3, 2025
7 2018-19 Series II October 23, 2018 April 23, 2025
8 2018-19 Series III November 13, 2018 May 13, 2025
9 2018-19 Series IV January 1, 2019 July 1, 2025
10 2018-19 Series V January 22, 2019 July 22, 2025
11 2018-19 Series VI February 12, 2019 August 12, 2025
12 2019-20 Series I June 11, 2019 June 11, 2025
13 2019-20 Series II July 16, 2019 July 16, 2025
14 2019-20 Series III August 14, 2019 August 14, 2025
15 2019-20 Series IV September 17, 2019 September 17, 2025
16 2019-20 Series V October 15, 2019 April 15, 2025
17 2019-20 Series VI October 30, 2019 April 30, 2025
18 2019-20 Series VII December 10, 2019 June 10, 2025
19 2019-20 Series VIII January 21, 2020 July 21, 2025
20 2019-20 Series IX February 11, 2020 August 11, 2025
21 2019-20 Series X March 11, 2020 September 11, 2025
22 2020-21 Series I April 28, 2020 April 28, 2025
23 2020-21 Series II May 19, 2020 May 19, 2025
24 2020-21 Series III June 16, 2020 June 16, 2025
25 2020-21 Series IV July 14, 2025 July 14, 2025
26 2020-21 Series V August 11, 2020 August 11, 2025
27 2020-21 Series VI September 8, 2020 September 8, 2025

Redemption price

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The redemption price for these bonds is calculated as a simple average of the closing price of gold from the previous week, as published by the India Bullion and Jewellers Association. This method ensures that the redemption value reflects recent market conditions, though it may lead to fluctuations in the payout. Investors are able to initiate the redemption process through their designated bank, post office, or stock exchange where the SGB was initially purchased. Investors are encouraged to stay informed about the RBI's announcements regarding redemption prices to optimize their returns.

SGBs, launched in November 2015, have seen significant returns for investors. Of the 59 existing series, 49 have completed five years and qualify for premature redemption. The RBI has facilitated 131 instances of such redemptions, demonstrating a robust support system for investors seeking early exits. The bank also issues a biannual redemption calendar, listing eligible series for the next six months. Recent analyses show that early exit through the RBI's window can yield XIRR returns of 17-19%. This flexibility allows investors to capitalize on favorable market conditions, enhancing their overall investment strategy. 

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SGB vs other gold investments

SGBs offer distinct advantages over other gold investments like gold ETFs and physical gold. They provide a fixed annual interest rate, typically ranging from 2.5% to 2.75%, which is not available with other gold options. Moreover, SGBs are more tax-efficient when held until maturity or redeemed through the RBI’s early redemption window, as capital gains tax is exempt in these scenarios. However, interest income from SGBs is subject to full taxation according to the applicable income tax slab. This tax efficiency, coupled with the interest income, makes SGBs a compelling choice for long-term investors. 

The RBI encourages investors to monitor redemption opportunities closely, as premature redemption can be advantageous. Gold should ideally make up 10-15% of an investment portfolio, serving as a hedge against inflation and economic uncertainty. Investors needing liquidity may consider premature redemption, especially if their SGB holdings exceed their target gold allocation. However, staying invested until maturity often provides greater benefits, given the bonds' interest payments and associated tax exemptions. This strategic approach ensures that investors can maximize their returns while maintaining a balanced portfolio. 

Alternative gold investment avenues like gold ETFs lack the fixed interest and tax benefits of SGBs and incur expense ratios that can erode returns. Therefore, while ETFs offer a digital means to invest in gold, SGBs may remain more appealing for those seeking stability and long-term gains. With no new SGB issues available, existing bonds have gained prominence due to their enhanced benefits. The unique combination of interest, tax efficiency, and market-linked returns positions SGBs as a superior investment vehicle in the current economic landscape. 

Published on: Jun 7, 2025 4:18 PM IST
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