The premature redemption date for Sovereign Gold Bond (SGB) 2019-20 Series VI is October 30, 2026. Redemption price will be based on the simple average of domestic gold prices for the preceding three business days.
Redemption Date Set for SGB 2019-20 Series VI
The Reserve Bank of India has confirmed that the premature redemption date for Sovereign Gold Bond (SGB) 2019-20 Series VI, issued on October 30, 2019, will fall on October 30, 2026. As per Government of India Notification F.No. 4(7)-B(W&M)/2019 dated September 30, 2019, premature redemption is permitted after the fifth year, on interest payment dates.
The redemption price will be determined based on the simple average of domestic prices of 999 purity gold for the preceding three business days. This method ensures fairness and reflects real market prices, reducing arbitrage opportunities.
For practitioners handling client portfolios or estate planning, this announcement provides clarity on liquidity events for SGB investors. The redemption mechanism is critical in advising clients on tax implications and capital gains treatment under the Income Tax Act. The predictable timing and pricing formula facilitate compliance and financial planning.
Citations
- F.No. 4(7)-B(W&M)/2019 dated September 30, 2019
