The final redemption date for Sovereign Gold Bond (SGB) 2018-19 Series-II, issued on October 23, 2018, falls on October 23, 2026, marking the completion of the 8-year tenure. Redemption price based on gold price average.
Redemption Triggered for 8-Year Sovereign Gold Bonds
The Reserve Bank of India has confirmed that the final redemption date for the Sovereign Gold Bond (SGB) 2018-19 Series-II—issued on October 23, 2018—falls on October 23, 2026, completing its eight-year tenure as per the Government of India notification dated October 8, 2018.
The redemption price will be determined based on the simple average of the closing price of 999 purity gold over the three business days preceding redemption. This mechanism, outlined in the SGB Scheme, ensures fair valuation linked to market benchmarks. The bonds will be repaid at face value adjusted for the prevailing gold price.
Investors and legal practitioners advising on sovereign instruments should note the automatic redemption feature and tax implications arising from capital gains, if any, upon maturity. This event reaffirms the operational clarity of the SGB framework under the Reserve Bank’s oversight.
Citations
- GOI Notification F.No.4(22)-B(W&M)/2018 dated October 8, 2018
