SGB 2019-20 Series V: Investors to pocket 294% gains on premature redemption — key dates and tax rules explained

SGB 2019-20 Series V investors can redeem their bonds at ₹14,725 per gram on October 15, 2026. Price gains range from 289% to 294%, excluding interest and taxes. Budget 2026 changes mean premature redemption is no longer eligible for the capital gains tax exemption.

The Reserve Bank of India (RBI) has set the premature redemption price of the Sovereign Gold Bond (SGB) 2019-20 Series V at ₹14,725 per gram, with the redemption window due on October 15, 2026.

Sovereign Gold Bonds are government securities denominated in grams of gold. Issued by the RBI on behalf of the Government of India, they allow investors to gain from changes in gold prices without holding physical gold. The bonds also pay fixed interest of 2.5% per annum on the original investment amount. Here's what you need to know.

How much can investors gain from premature redemption?

According to an RBI press release issued on Wednesday, premature redemption is permitted after the fifth year from the bond's issue date, on an interest payment date.

The redemption price is calculated using the simple average of the closing prices of 999-purity gold for the three preceding business days, as published by the India Bullion and Jewellers Association Ltd (IBJA). For this tranche, the average of prices on October 12, 13 and 14, 2026, resulted in a redemption price of ₹14,725 per gram, effective October 15, 2026.

According to a Ministry of Finance release in 2019, the SGB 2019-20 Series V tranche was issued at ₹3,788 per gram. Investors who applied online and paid digitally received a discount of ₹50 per gram, bringing their effective purchase price to ₹3,738.