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Investors in the Sovereign Gold Bond (SGB) 2020-21 Series-VIII are set to book gains of about 141% as the Reserve Bank of India (RBI) has fixed the premature redemption price at ₹12,476 per unit for the window falling due today, November 18, 2025.
The tranche was originally issued on November 18, 2020 at an issue price of ₹5,177 per gram for offline subscribers, while online applicants received a ₹50 discount per gram.
Under the SGB rules, premature redemption is allowed only after the fifth year and only on interest payment dates. The RBI said the redemption value has been determined using the simple average of closing prices of 999-purity gold, as published by the India Bullion and Jewellers Association (IBJA), for November 13, 14, and 17, 2025.
Investors who did not submit requests for premature redemption of this gold bond will need to wait until the next available exit date or sell the bonds on stock exchanges, where prices and liquidity vary.
TheSovereign Gold Bond Scheme allows retail investors to earn returns linked to gold prices along with fixed interest income, and the maturity proceeds are exempt from capital gains tax if held till the end.
Launched in 2015, the Sovereign Gold Bond Scheme offers investors a paper-based alternative to holding physical gold, combining the benefits of gold price appreciation with a 2.5% fixed annual interest.
According to Minister of State for Finance Pankaj Chaudhary, the government had mobilised around 146.96 tonnes of gold worth ₹72,275 crore through 67 tranches as of March 31, 2025. Up to June 15, 2025, investors had redeemed 18.81 tonnes worth of gold-equivalent bonds.
The tranche was originally issued on November 18, 2020 at an issue price of ₹5,177 per gram for offline subscribers, while online applicants received a ₹50 discount per gram.
Under the SGB rules, premature redemption is allowed only after the fifth year and only on interest payment dates. The RBI said the redemption value has been determined using the simple average of closing prices of 999-purity gold, as published by the India Bullion and Jewellers Association (IBJA), for November 13, 14, and 17, 2025.
Investors who did not submit requests for premature redemption of this gold bond will need to wait until the next available exit date or sell the bonds on stock exchanges, where prices and liquidity vary.
TheSovereign Gold Bond Scheme allows retail investors to earn returns linked to gold prices along with fixed interest income, and the maturity proceeds are exempt from capital gains tax if held till the end.
Launched in 2015, the Sovereign Gold Bond Scheme offers investors a paper-based alternative to holding physical gold, combining the benefits of gold price appreciation with a 2.5% fixed annual interest.
According to Minister of State for Finance Pankaj Chaudhary, the government had mobilised around 146.96 tonnes of gold worth ₹72,275 crore through 67 tranches as of March 31, 2025. Up to June 15, 2025, investors had redeemed 18.81 tonnes worth of gold-equivalent bonds.
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