Sovereign Gold Bonds to trade on exchanges from June 13: RBI
RBI has notified that the BSE will allow the trading of government's SGB scheme from next week.
Sovereign Gold Bond Scheme, which was announced by government on October 30, 2015, on Wednesday said that the commencement of trading of gold bonds will start from June 13 on exchanges.
According to Zee Business, the Reserve Bank of India has notified that the BSE will allow the trading of government's Sovereign Gold Bond (SGB) scheme from next week.
The central bank said, "In terms of Para 17 of the Scheme, the Reserve Bank of India hereby notifies June 13, 2016 as the date from which the Sovereign Gold Bonds (issued on November 30, 2015) held in dematerialised form shall be eligible for trading on the stock exchanges recognised by the Government of India under the Securities Contracts (Regulation) Act, 1956. The date of commencement of trading in respect of Bonds issued in subsequent tranches will be notified later".
What is SGBs?
SGBs are government bonds or securities denominated in grams of gold, which are issued by RBI on behalf on Government of India. These bonds are used as substitutes of physical gold.
Earlier, BSE had said in a circular that, "Received approval form the Reserve Bank of India (RBI) for acting as a receiving office for the Sovereign Gold Bond scheme.”
On Friday, BSE started a mock trading session to test the platform which is used for IPOs, offer for sale.