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BSE commences trading in seventh tranche of Sovereign Gold Bond

Feb 28th, 2017 6:23 am | By | Category: LATEST NEWS

Mumbai, Monday, February 27th, 2017: BSE, Asia’s oldest exchange and now world’s fastest stock exchange of which Ashish Kumar Chauhan is MD and CEO. today BSE announced that Online Bidding Platform for Sovereign Gold Bond Scheme 2016 -17 – Series 4 (Tranche 7) is open for subscription from Monday, February 27 to Friday, March 03, 2017 for trading members to subscribe to the issue for their clients. Members will be able to place bids for physical mode for their clients to hold SGB units in non-demat form. This will be in addition to the existing bid entry in demat mode through iBBS system – Exchange’s existing web-based online bidding platform for IPO, Offer for Sale (OFS), Offer to buy (OTB) issues.

Six tranches of the bonds have been issued so far. In the light of reasonable success of the issuances, Government of India has now decided to issue the seventh tranche of the Sovereign Gold Bond. BSE was the No 1. Receiving office amongst exchanges for the 5th tranche.

The bonds will be issued by the Reserve Bank of India on behalf of the Government of India. The subscription would be open from February 27 to March 3, 2017 and the bonds will be issued on March 17, 2017. The bonds will be issued in denominations of one gram of gold or multiples thereof with minimum subscription of one gram and maximum of 500 gram enabling wider multitude of investors to invest.

To facilitate systematic trading in SGB, India’s oldest and fastest exchange BSE, had introduced online bid collection facility in July 2016 for such issuance. The exchange had received approval from RBI to act as receiving office for SGB issuances. The online bid collection facility is made available to trading members on web-based iBBS system.

The RBI has requested BSE to ensure active participation and enable success of the tranche given the extensive reach and accessibility, hence BSE would play an important role in the wide availability of the product. BSE commenced trading of sovereign gold bonds (SGBs) on Monday, June 13, 2016 on its platform. SGBs is traded under the “G” Group Equity Cash segment of BSE, along with other Government Securities available for trading and settled on T+2 basis in the demat account of the investor. The minimum lot size will be 1 gram and in multiple of 1 gram thereof.

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