Leading stock exchange BSE today said upfront deposit of cash collateral will not be required while placing bids for Sovereign Gold Bond (SGB) from tomorrow.
"Members are hereby informed that, with effect from Wednesday, July 20, 2016, while placing bids for Sovereign Gold Bond (SGB) Scheme 2016-17 - Series 1 upfront deposit of cash collateral will not be required," BSE said in a circular.
Instead of the cash collateral, members will have the facility to effect funds pay-in for the SGB bids placed on BSE SGB platform, the exchange added.
The SGB issue price has been fixed at Rs 3,119 per gram. An investor can invest for a minimum unit of one gram and a maximum of 500 grams. The subscription is open till July 22.
The 4th tranche of Sovereign Gold Bond (SBG) scheme opened for subscription yesterday, through which government aims to attract a large number of investors so as to curb demand for physical gold. Gold imports have been draining the country's foreign exchange.
