In the new tranche of sovereign gold bond (SGB) scheme opening on Monday, BSE will offer purchase of the bullion units in physical form in an attempt to promote sales. So far, investors were allowed to hold SGBs only in dematerialised (demat) or electronic mode.
The RBI has fixed the price of sovereign gold bonds at Rs 2,780 per gram, which will be open for public subscription from July 10-14. Trading members will be able to place bids for physical mode for their clients to hold SGB units in non-demat form, the BSE said in a circular.
This will be in addition to the existing bid entry in demat mode through the iBBS system - the exchange's existing webbased online bidding platform for IPO, offer for sale, offer to buy issues.
According to BSE guidelines, investors who wish to subscribe to SGB units in physical certificate form need to approach their broker along with funds.
The broker can take any one of the documents from PAN/TAN/ Passport/Aadhaar card or Voter ID and BSE application form from the client who is interested in placing bid in physical mode, the stock exchange said.
The BSE circular that the brokers have to ensure that KYC (know-your-client) details are complied with as well as recorded the prior consent of its clients.
After completing document verification, members would have to enter bid details in the exchange's iBBS system following which a unique bid number would be generated.
Members can view status of the bids in the order book of the SGB module in iBBS system as per the bid confirmation process timeline. BSE also said the trading members have to preserve the application form till the bonds are matured and repaid.