Mock trading on sovereign gold bonds begins on BSE

The Bombay Stock Exchange (BSE) has begun conducting mock bidding session for the sixth tranche of Sovereign Gold Bonds (SGB) scheme, which is expected to be issued later this month by the government.

The finance ministry had last month said the sixth tranche of SGB is expected to be issued around the third week of October, prior to Diwali. This tranche is expected to come up with additional features to attract consumers.

''Trading members and custodians are hereby informed that the exchange shall conduct mock bidding session of Sovereign Gold Bonds Scheme (tranche six) on the iBBS live platform from Tuesday, October 18, 2016 onwards,'' BSE said in a circular.

The mock bidding will take place at an issue price of Rs3,119 per gram of gold, reports said.

Sovereign gold bonds provide investors a choice to diversify portfolio without the need to buy the metal in physical form. The SGB scheme was announced by the government on 30 October 2015.

The Reserve Bank of India, in consultation with the Government of India, has issued five tranches of Sovereign Gold Bonds for a total value of Rs3,060 crore till date. Investors in these bonds have been provided with the option of holding them in physical or dematerialised form.

The requests for dematerialisation have largely been processed successfully. A set of records, however, could not be processed for various reasons such as mismatches in names and PAN numbers, inactive or closed demat accounts, besides other reasons.

RBI said the list of such unsuccessful demat requests is now placed on https://sovereigngoldbonds.rbi.org.in.

RBI has requested investors to ascertain whether their investor IDs figure in the list. All receiving offices also need to access this information to ascertain if any of their clients who had purchased Sovereign Gold Bonds through them figure in the list and make appropriate corrections in consultation with their clients.

The modification window in the e-Kuber application of the Reserve Bank of India will be kept open for this purpose until 21 October 2016.

Meanwhile, the Sovereign Gold Bonds will continue to be held in RBI books and would be serviced regularly.