Investors holding Sovereign Gold Bond (SGB) 2018-19 Series IV have good news.
The Reserve Bank of India (RBI) has announced the premature redemption price for this bond series, which is eligible for redemption on July 1, 2026.
The redemption price has been fixed at ₹14,086 per unit, giving investors who bought the bonds at the issue price a return of around 359% over the investment period.
In addition to the price appreciation, investors also earned 2.5% annual interest, paid every six months.
Redemption Price Fixed at ₹14,086 Per Unit
According to the RBI, the redemption price 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 June 25, June 29 and June 30, 2026.
Under the Sovereign Gold Bond Scheme, investors are allowed to redeem their bonds before maturity after completing five years, provided the redemption falls on an interest payment date.
For this series, the next premature redemption date is July 1, 2026.
How Much Have Investors Earned?
The SGB 2018-19 Series IV was open for subscription from December 24 to December 28, 2018, and the bonds were issued on January 1, 2019.
The issue price was:
₹3,119 per gram for offline investors.
₹3,069 per gram for online investors, who received a ₹50 discount.
With the redemption price now at ₹14,086 per unit, investors who purchased the bonds at the issue price have earned an overall return of about 359%, along with the additional 2.5% annual interest throughout the holding period.
How Does Premature Redemption Work?
Sovereign Gold Bonds have a total tenure of eight years.
However, investors have the option to redeem them early after completing five years, on scheduled interest payment dates.
As of June 30, 2026, the market price of 24-carat gold in India was around ₹14,254 per 10 grams, making the RBI’s redemption price closely aligned with prevailing gold prices.
New Tax Rules for SGBs
Budget 2026 has introduced important changes to the taxation of Sovereign Gold Bonds.
If an investor purchased the bonds during the primary issue and holds them until the full eight-year maturity, the capital gains will be completely exempt from tax.
However, capital gains will remain taxable in the following situations:
The bonds are redeemed during the premature redemption window.
The bonds are bought in the secondary market.
The bonds are sold in the secondary market.
Important Note for Investors
While the announced redemption price may offer attractive returns, investors should also consider the tax implications and their financial goals before deciding whether to redeem their bonds early or continue holding them until maturity.
Disclaimer: This article is for general information only and should not be considered tax or investment advice.
Tax rules may differ based on individual circumstances and can change over time.
Investors should consult a SEBI-registered investment adviser or a qualified tax professional before making any investment or redemption decisions.
