Redemption price and returns
The redemption price for both SGB tranches is ₹9,551 per unit, based on the average closing price of 999 purity gold on May 8, 9, and 12, 2025, as published by the India Bullion and Jewellers Association (IBJA).
SGB 2017-18 Series VII was issued at ₹2,934 per unit.
The redemption price reflects a 226% return, or a profit of ₹6,617 per unit, excluding interest.
SGB 2018-19 Series III was issued at ₹3,183 per unit, delivering a 200% return, or a profit of ₹6,368 per unit, excluding interest.
These gains are tax-free, but the 2.5% annual interest on the face value is taxable.
What happens if you miss redemption today?
If you fail to submit a redemption request today, you cannot redeem prematurely until the next eligible redemption date. This opportunity typically arises every six months, on the next interest payout date.
You will continue holding the bonds until the next redemption window opens.
Experts advise checking with your bank or depository participant well in advance of such dates.
For demat account holders, a redemption request can be submitted through the depository participant.
It must be noted that the government in Union Budget 2025 discontinued fresh issuances of the Sovereign Gold Bond scheme.
However, existing bonds remain active and will be redeemed on schedule or on eligible early redemption dates.
