Bombay Stock Exchange has received the Reserve Bank approval to start an online bidding platform for Sovereign Gold Bond scheme.
SGBs — government securities denominated in grams of gold — offer an alternative to holding gold in physical form.
The bond is issued by RBI on behalf of government and investors can apply for the bonds at the price as disseminated by the central bank.
Issued by the RBI on behalf of the Union Government, these bonds are none other than government securities denominated in grams of gold and are considered a superior alternative to holding physical gold.
Investors can apply for the bonds at the price disseminated by the RBI.
BSE has received approval from the Reserve Bank of India (RBI) for acting as a receiving office for the Sovereign Gold Bond scheme.
The exchange plans to offer an online bidding platform for collecting bids from members and their clients for the SGB issue.
This bidding platform is part of the iBBS (Internet-based Book Building System) — exchange’s existing web-based online bidding platform for IPO, Offer for Sale, and offer to buy issues.
BSE said that mock bidding session in this regard would be conducted from today to test the system’s performance.
The exchange shall communicate the go-live date of SGB bidding platform via separate circular.