Sovereign gold bond 2020-21 Series I early redemption set at ₹14,159 a unit

The next date for premature redemption of the 2020-21 Series I sovereign gold bond is October 28, 2026, at ₹14,159 per unit, according to a press release issued by Ajit Prasad, Deputy General Manager (Communications).

The bond was issued on April 28, 2020, under a government notification dated April 13, 2020. Under the Sovereign Gold Bond Scheme, premature redemption may be permitted after the fifth year from the date of issue, on a date on which interest is payable. October 28, 2026 is the next such date for this tranche.

The redemption price is based on the simple average of the closing price of gold of 999 purity over the previous three business days before the redemption date, as published by the India Bullion and Jewellers Association Ltd (IBJA). For this redemption, those three business days were October 23, October 26 and October 27, 2026.

The figure of ₹14,159 per unit of SGB is therefore the price payable on that date, calculated from the three-day average rather than set at the issuer's discretion.