SGB investors pocket over 318% returns with exit price fixed @ ₹14,199: How much will your investment be worth?
The RBI has fixed the premature redemption price of the Sovereign Gold Bond (SGB) 2019-20 Series II at ₹14,199 per gram for investors eligible to exit after completing the mandatory five-year holding period.
- Jul 17, 2026,
- Updated Jul 17, 2026 4:30 PM IST
Investors holding Sovereign Gold Bond (SGB) 2019-20 Series II can now opt for premature redemption, with the Reserve Bank of India (RBI) fixing the redemption price at ₹14,199 per gram. The move allows eligible investors to lock in gains of more than 318% over the original issue price, apart from the interest earned during the holding period.
The RBI has fixed the premature redemption price of the Sovereign Gold Bond (SGB) 2019-20 Series II at ₹14,199 per gram for investors eligible to exit after completing the mandatory five-year holding period. The series was issued on July 16, 2019, and although SGBs have an eight-year maturity, investors are allowed to redeem them early through the RBI on designated interest payment dates after five years.
Redemption value
The redemption value has been calculated using the simple average of the closing prices of 999 purity gold published by the India Bullion and Jewellers Association (IBJA) for July 13, 14 and 15, 2026, in line with the RBI's redemption formula.
The bond was issued at ₹3,393 per gram for investors who applied online and paid digitally, while offline subscribers purchased it at ₹3,443 per gram.
At the latest redemption price, online subscribers have earned a capital gain of ₹10,806 per gram, translating into a return of nearly 318.5%. Offline investors have also recorded a capital appreciation of around 312.4%, excluding the interest paid over the years.
MUST READ: SGB 2020-21 Series-IV redemption at Rs 14,307: Returns, tax rules and ITR filing explained
How much will your investment be worth?
Online subscribers (Issue price: ₹3,393 per gram)
| Initial investment | Approximate redemption value* |
|---|---|
| ₹50,000 | ₹2.09 lakh |
| ₹1 lakh | ₹4.18 lakh |
| ₹2 lakh | ₹8.37 lakh |
| ₹5 lakh | ₹20.92 lakh |
*Based on the RBI redemption price of ₹14,199 per gram. Semi-annual interest is not included.
Online vs offline subscribers
| Particulars | Online | Offline |
|---|---|---|
| Issue price | ₹3,393 | ₹3,443 |
| Redemption price | ₹14,199 | ₹14,199 |
| Capital gain per gram | ₹10,806 | ₹10,756 |
| Capital appreciation | 318.5% | 312.4% |
MUST READ: ‘Secondary market for SGBs is no longer a tax haven’: CA flags important rule shift from April 1
Sovereign Gold Bonds vs physical gold
Unlike physical gold, Sovereign Gold Bonds provide investors with an additional 2.5% annual interest, paid every six months directly into the registered bank account. The interest is calculated on the original investment amount rather than the prevailing gold price, offering a regular income stream even as the investment tracks the movement in gold prices.
Investors should also understand the tax implications before opting for premature redemption. While Sovereign Gold Bonds are widely regarded as tax-efficient, the exemption from capital gains tax is available only when bonds purchased in the primary issuance are held until their original eight-year maturity. Investors exiting through the RBI's five-year premature redemption window are liable to pay capital gains tax. Under the current rules, gains on holdings exceeding 12 months are taxed as long-term capital gains at 12.5%, while gains on shorter holdings are taxed according to the investor's applicable income-tax slab.
What should investors do?
Whether investors should redeem now or continue holding the bonds depends on their financial objectives. Those looking to book profits after a sharp rally in gold prices or requiring funds may find the current redemption window attractive. However, investors who expect gold prices to appreciate further and are not in immediate need of liquidity may prefer to remain invested until maturity. Holding the bonds longer also allows investors to continue receiving the remaining interest payments and, if held until the eight-year maturity, potentially benefit from the more favourable tax treatment available under the scheme.
Investors holding Sovereign Gold Bond (SGB) 2019-20 Series II can now opt for premature redemption, with the Reserve Bank of India (RBI) fixing the redemption price at ₹14,199 per gram. The move allows eligible investors to lock in gains of more than 318% over the original issue price, apart from the interest earned during the holding period.
The RBI has fixed the premature redemption price of the Sovereign Gold Bond (SGB) 2019-20 Series II at ₹14,199 per gram for investors eligible to exit after completing the mandatory five-year holding period. The series was issued on July 16, 2019, and although SGBs have an eight-year maturity, investors are allowed to redeem them early through the RBI on designated interest payment dates after five years.
Redemption value
The redemption value has been calculated using the simple average of the closing prices of 999 purity gold published by the India Bullion and Jewellers Association (IBJA) for July 13, 14 and 15, 2026, in line with the RBI's redemption formula.
The bond was issued at ₹3,393 per gram for investors who applied online and paid digitally, while offline subscribers purchased it at ₹3,443 per gram.
At the latest redemption price, online subscribers have earned a capital gain of ₹10,806 per gram, translating into a return of nearly 318.5%. Offline investors have also recorded a capital appreciation of around 312.4%, excluding the interest paid over the years.
MUST READ: SGB 2020-21 Series-IV redemption at Rs 14,307: Returns, tax rules and ITR filing explained
How much will your investment be worth?
Online subscribers (Issue price: ₹3,393 per gram)
| Initial investment | Approximate redemption value* |
|---|---|
| ₹50,000 | ₹2.09 lakh |
| ₹1 lakh | ₹4.18 lakh |
| ₹2 lakh | ₹8.37 lakh |
| ₹5 lakh | ₹20.92 lakh |
*Based on the RBI redemption price of ₹14,199 per gram. Semi-annual interest is not included.
Online vs offline subscribers
| Particulars | Online | Offline |
|---|---|---|
| Issue price | ₹3,393 | ₹3,443 |
| Redemption price | ₹14,199 | ₹14,199 |
| Capital gain per gram | ₹10,806 | ₹10,756 |
| Capital appreciation | 318.5% | 312.4% |
MUST READ: ‘Secondary market for SGBs is no longer a tax haven’: CA flags important rule shift from April 1
Sovereign Gold Bonds vs physical gold
Unlike physical gold, Sovereign Gold Bonds provide investors with an additional 2.5% annual interest, paid every six months directly into the registered bank account. The interest is calculated on the original investment amount rather than the prevailing gold price, offering a regular income stream even as the investment tracks the movement in gold prices.
Investors should also understand the tax implications before opting for premature redemption. While Sovereign Gold Bonds are widely regarded as tax-efficient, the exemption from capital gains tax is available only when bonds purchased in the primary issuance are held until their original eight-year maturity. Investors exiting through the RBI's five-year premature redemption window are liable to pay capital gains tax. Under the current rules, gains on holdings exceeding 12 months are taxed as long-term capital gains at 12.5%, while gains on shorter holdings are taxed according to the investor's applicable income-tax slab.
What should investors do?
Whether investors should redeem now or continue holding the bonds depends on their financial objectives. Those looking to book profits after a sharp rally in gold prices or requiring funds may find the current redemption window attractive. However, investors who expect gold prices to appreciate further and are not in immediate need of liquidity may prefer to remain invested until maturity. Holding the bonds longer also allows investors to continue receiving the remaining interest payments and, if held until the eight-year maturity, potentially benefit from the more favourable tax treatment available under the scheme.