Media Release
BSE Online Bidding Platform for Sovereign Gold Bond Scheme of RBI
Mumbai, Monday, July 11, 2016: Sovereign Gold Bond are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.
Sovereign Gold Bond was launch by the Hon’ble Prime Minister Shri Narendra Modi in Nov 2015 to cut down second largest expensive imports. The first tranche of the gold bond scheme valued at Rs. 246 Crores with 915.95 kg of gold. RBI has issued three tranches so far. Aggregate for value of Rs 1301 cr with 4833.95 kg of gold. And fourth one is expected by 18th of this month. To facilitate systematic trading in SGB, India’s oldest and fastest exchange BSE, has introduced online bid collection facility for such issuance. The exchange has received approval from RBI to act as receiving office for SGB issuances. The online bid collection facility shall be available to trading members on web-based iBBS system.
To create awareness of this product BSE has conducted roadshows in Kolkata on July 8, 2016 for the corporates & Kochi on July 08, 2016 last week and plans to have series of such roadshow in Mumbai on July 13, 2016, Delhi on July 12, 2016, Chennai, July 15, 2016, Ahmedabad on July 11, 2016, Bangalore on July 16, 2016, Hyderabad on July 14, 2016, Kolkata on July 13, 2016, Jaipur, Indore etc. BSE has already commenced trading of sovereign gold bonds (SGBs) from 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. BSE plans to give commission to their members on slab basic from 0.5 % of the value to 0.95% of the value.
Circular regarding BSE online bidding platform for Sovereign Gold Bond Scheme of RBI had been already issued to the trading members on already 02nd June 2016 via notice number 20160602-24
Trading members have been informed that certain minor changes have been incorporated in the batch upload format, using which multiple bids can be submitted on the online bidding platform for SGB through the web-based iBBS system. The revised batch upload format and sample file are enclosed herewith as Annexure. All trading members are request to make necessary changes at their end.
It is hereby informed to all trading members that online bidding platform for SGBs is available for mock bidding sessions on the iBBS test environment. Members can login to the test environment using their existing login credentials. Weblink for iBBS test environment is –https://demo.bseindia.com/asba/
The Exchange shall communicate the go-live date of SGB bidding platform via separate circular.
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Yatin Padia
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Yatin.padia@bseindia.com