Did You Miss SGB Premature Exit Window: Check What You Should Do Know

Are you one of those Sovereign Gold Bond (SGB) investors who missed the latest premature exit window on April 16, 2025? Now, you are wondering what will happen to your investments. Don’t worry, you will not lose your investments. Read this to find what your options are now.

April 16, 2025, marked the premature redemption for the Sovereign Gold Bond (SGB) 2017-18 Series III. The Reserve Bank of India (RBI) fixed the redemption price at ₹9,221 per unit. The said redemption price has given investors an absolute return of 211.1% on their initial investment of ₹2,964 per gram in 2017, excluding interest.

Sovereign Gold Bonds (SGBS) have an 8-year maturity period, but investors are allowed to exit early starting from the 5th year, only on interest payout dates. For the series issued on October 16, 2017, the first early redemption window opened on October 16, 2022. The most recent one was on April 16, 2025.

How is the SGB Redemption Price Determined?

The RBI sets the redemption price based on the average closing price of 999-purity gold over the last three business days before the redemption date. These rates are published by the India Bullion and Jewellers Association (IBJA).

For the April 16, 2025, redemption, the RBI used gold prices from April 9, 11, and 15 (since April 10 was a holiday). Based on this, the premature redemption price was fixed at ₹9,221 per unit.

This rate applies only to those who submitted redemption requests through their bank or demat provider by the due date.

Missed SGB Premature Exit Window: What Should You Know?

If you missed the April 16 window:

• Hold the bond until maturity in October 2025. You’ll receive the redemption price based on gold rates at that time.

• Sell it on the stock exchange. Note that prices may differ from RBI rates, and market liquidity can vary.

• Keep an eye on interest payment dates for any other SGB tranches you may own.

• Consult your bank or depository well ahead of redemption windows to avoid missing them.

Also Read: RBI Announces Premature Redemption for SGB 2017 Series III

Conclusion

As announced in the Union Budget 2025, the issue of new SGBs has been discontinued. However, all existing bonds remain valid and will be redeemed as scheduled or on eligible early exit dates.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.