New Delhi, Aug. 14 -- Investors holding Sovereign Gold Bond (SGB) 2019-20 Series III can opt for premature redemption from today, August 14, 2026. The Reserve Bank of India (RBI) has fixed the redemption price at Rs.15,310 per unit, sharply higher than the issue price of Rs.3,449 per gram for investors who applied online.

The price translates into an absolute gain of Rs.11,861 per unit, or about 343.9%, on the initial investment, excluding the interest earned during the holding period. The SGB was issued on August 14, 2019, making this a seven-year holding period.

The redemption price is based on the simple average of the closing prices of 999-purity gold for the three business days preceding the redemption date, as published by the Ind...