The Reserve Bank of India has fixed the final redemption price for Sovereign Gold Bond 2018-19 Series III at ₹14,024 per unit. The tranche reaches final redemption on 13 November 2026 after completing eight years from its issue date.
The bond was issued on 13 November 2018 under the government notification dated 8 October 2018. The scheme terms provide for repayment when eight years have elapsed from the issue date.
How the price was calculated
The redemption value follows the simple average of the closing price of gold of 999 purity over the three business days immediately before redemption. The India Bullion and Jewellers Association publishes the underlying closing prices.
For this tranche, the RBI used the closing prices for 10, 11 and 12 November 2026. Their simple average produced the final value of ₹14,024 for each unit of the bond.
The formula ties repayment to the specified domestic gold-price benchmark rather than to a separately negotiated market price. The RBI release provides the final per-unit amount and the dates used for the calculation.
The benchmark is expressed per unit of SGB, with each unit carrying the scheme’s defined gold denomination. The published price gives holders and intermediaries one common figure for processing final repayment on the maturity date.
Final redemption follows the eight-year term
This event is the final redemption of SGB 2018-19 Series III. It is distinct from the premature-redemption windows that apply to eligible tranches before the full tenor ends.
The official release identifies 13 November as both the eighth anniversary of issuance and the final redemption date. Holders’ repayment value is therefore determined through the published formula and the number of units held.
Because the tranche has reached the end of its stated term, the notice completes the pricing step for final settlement. The release does not describe a new subscription, secondary-market transaction or extension of the bond.
A defined benchmark window
Using three business days reduces dependence on a single day’s closing price. The relevant period for this tranche covers three consecutive business dates ending the day before redemption.
The release does not provide the individual daily IBJA prices. It states only the resulting simple average and final per-unit redemption value.
That disclosure allows the final amount to be reconciled to the stated methodology while keeping the notice focused on the repayment value. The dates also establish exactly which business-day closes formed the calculation.
Key numbers
Final redemption price: ₹14,024 per unit Issue date: 13 November 2018 Final redemption date: 13 November 2026 Tenor completed: 8 years Pricing window: 10–12 November 2026
What boards and CFOs should note
- How many units are held at the 13 November final redemption date, when the published value is ₹14,024 per unit?
- Does treasury reporting distinguish this final eight-year redemption from any premature-redemption transactions in other SGB tranches?
- Are the 10, 11 and 12 November benchmark dates aligned with internal valuation and reconciliation records?
Source: Reserve Bank of India, 12 November 2026. This is a summary of an official release, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
