Sovereign Gold Bond (SGB) 2020-21 Series I holders may seek premature redemption on October 28, 2026, after completing five years. Redemption price based on simple average of gold prices over the preceding three business days.
Premature Redemption of SGB 2020-21 Series I
As per Government of India notification F.No. 4(4)-B(W&M)/2020 dated April 13, 2020, holders of Sovereign Gold Bonds (SGB) 2020-21 Series I are eligible for premature redemption on October 28, 2026. This is the first such date available after the completion of five years from the issue date (April 28, 2020), as permitted under the SGB Scheme rules.
The redemption price will be determined based on the simple average of the closing price of 999 purity gold over the preceding three business days, as published by the Indian Bullion and Jewelers Association Ltd (IBJAL). This mechanism ensures market-linked valuation in line with Scheme guidelines. Redemption requests must be submitted through designated banks and post offices.
Legal practitioners advising individual investors or financial advisors should note that premature redemptions are permitted only on interest payment dates, and must be processed via authorized intermediaries. The SGB Scheme operates under the Government of India (Sovereign Gold Bond Scheme) Rules, 2015, as amended.
Citations
- Government of India (Sovereign Gold Bond Scheme) Rules, 2015
