SGB Premature Redemption Yields Significant Returns for Investors
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SGB Premature Redemption: Investors Bag Bumper 278% Returns
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CNBC Awaaz•16-03-2026, 09:01
SGB Premature Redemption: Investors Bag Bumper 278% Returns
•RBI announced premature redemption price for Sovereign Gold Bond (SGB) 2019-20 Series-X, issued March 11, 2020.
•Redemption price for March 11, 2026, set at ₹15,920 per unit, based on gold's average closing price.
•Investors who bought at ₹4,260/gram saw ~273.7% return; online buyers at ₹4,210/gram received ~278% (excluding interest).
•SGBs offer 2.50% annual interest, paid semi-annually; full interest with principal at maturity.
•New tax rules from April 1, 2026: Capital Gains Tax exemption only for primary issues held till maturity; premature redemption or secondary market purchases lose exemption.
