Sovereign gold bond premature redemption price fixed at ₹14,213 per unit

The redemption price for premature redemption of the Sovereign Gold Bond 2019-20 Series VI, due on October 30, 2026, has been fixed at ₹14,213 per unit, according to a press release issued by Ajit Prasad, Deputy General Manager (Communications).

The price is based on the simple average of the closing price of gold of 999 purity over the previous three business days — October 27, October 28 and October 29, 2026 — as published by the India Bullion and Jewellers Association Ltd (IBJA).

Under the scheme, premature redemption of a gold bond may be permitted after the fifth year from the date of issue, on a date when interest is payable. This tranche was issued on October 30, 2019, and the next due date for premature redemption is October 30, 2026.

The redemption value tracks the metal rather than being fixed at purchase, so the exit price moves with the market. Every premature redemption under the scheme is calculated the same way, off a three-day IBJA average, making this release the template investors use to time their exits.