For the second tranche of Sovereign Gold Bonds for 2017-18, Bombay Stock Exchange (BSE) offered purchase of the bullion (gold) units in physical form, a move which could help boost transaction volumes.
So far, in the eight previous tranches of the bonds, investors were allowed to hold SGBs only in dematerialized (DEMAT) or electronic mode.
The RBI fixed the price of bonds at Rs. 2780 per gram, and these bonds will be issued on 28th July.
Process of purchasing physical bullion units
As per BSE guidelines, investors need to first approach their broker (trading members) along with funds to subscribe to SGB units in physical form.
Trading members will be allowed to place bids for physical mode for their clients to hold SGB units in non-demat form.
Trading members need to ensure that KYC (know-you-client) details are complied with along with prior consent of its clients. Clients need to submit BSE application form and any of the following documents i.e. PAN/TAN/Passport/Aadhaar/Voter ID.
Members will then have to enter bid details in the exchange’s iBBS system whose status can be viewed in the order book of the SGB module in iBBS system after bid confirmation.