Description

NSE announces early redemption facility for Sovereign Gold Bonds held in physical mode for October to December 2025 period.

Summary

NSE has announced the early redemption facility for Sovereign Gold Bonds (SGBs) held in physical mode for the period October 2025 to December 2025. This facility allows investors to redeem their SGB units after completion of fifth year from the date of issue, based on RBI guidelines and GOI notifications.

Key Points

  • Early redemption available for specific SGB series from 2018-19 and 2020-21
  • Redemption price based on simple average closing gold price of 999 purity published by IBJA
  • Only investors who originally applied in physical mode can participate
  • Partial redemption allowed with modification and cancellation during redemption period
  • Trading members must verify investor KYC before processing requests

Regulatory Changes

RBI Press release No-2025-2026/955 dated August 22, 2025 provided calendar for premature redemption during October 2025 - March 2026. This continues the facility previously announced for April to September 2025 period.

Compliance Requirements

  • Trading members must ensure investor consent for platform participation
  • Verification of investor details and bank account information before processing
  • KYC updates required for SGB investors before early redemption requests
  • Adherence to RBI/GOI prescribed legal framework
  • Input of Investor ID and Investment Serial Number for processing

Important Dates

  • SGB202101R (2020-21, Series I): September 29 - October 17, 2025 (Redemption: October 28, 2025)
  • SGB181901R (2018-19 Series I): October 06 - October 27, 2025 (Redemption: November 04, 2025)
  • SGB202103R (2020-21, Series III): November 17 - December 05, 2025 (Redemption: December 16, 2025)
  • SGB202104R (2020-21, Series IV): December 12, 2025 - January 05, 2026 (Redemption: January 14, 2026)
  • SGB181905R (2018-19 Series V): December 22, 2025 - January 12, 2026 (Redemption: January 22, 2026)

Impact Assessment

This facility provides liquidity option for SGB investors before the 8-year maturity period. The staggered redemption schedule across different series helps manage market impact while providing flexibility to investors. Trading members need to prepare systems and processes to handle the redemption requests efficiently during the specified windows.

Impact Justification

Affects SGB investors seeking early redemption, provides facility for specific series with defined timelines