How to participate in noncompetitive bidding of gsec in zerodha for retail investor using zerodha as new regulation allow cdsl to sell gsec to retail investor

Zerodha Zerodha platforms
1

please guide how to place order to get access of nds om or nds platform

2

We are working on allowing retail investors buy G-secs. The platform should be ready very shortly. Will keep you posted.

3

Any update on this dear?

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4

You should be able to invest in Gsecs in a week or so.

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5

Thanks buddy. Such quick services only keep the faith of indian investors. Looking forward to your platform launch on gsec.

6

will you be launching platform this week?

7

Here you are:

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These securties aren’t listed on the exchanges, yet. The exchnages have said that they will be listed soon.

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Thnx for taking customer suggestion and integrating them into your products so soon. Could you please add the below features if possible.

  1. Giving access to NDS OM and NDS platform directly to retailers in addition to non competitive bidding.

  2. Building separate app/integrating these features in existing app.

Anyway thanks again for starting this initiative and wish you best of luck for ur future endeavour.

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These bonds are being made available though a non-competitive bidding system. NDS is primary for institutions.

We are working on integrating the order placement directly in the Coin app.

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Federal bank. It costs 10k + gst.

Only high volume , then only it makes sense. So closed it.

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Please confirm if the rule has been changed.

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I’ll get back to you on this.

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Any update on this?

I think as zerodha is a primary member/broker, retail demat holder has to buy or sell their bonds in nds om platform through you. This has been stated in the article.

I donot think t bills or gsecs are going to be listed in exchanges as nds om platform is doing the same function. RBI has given Exchanges only the responsibility to bring demat holder retail investor to nds platform and for noncompetitive bidding through primary dealers/members. Earlier gsecs were only there for gilt account holder and NDS OM facility were there to only institutional investor.

Zerodha has extended only non competitive bidding and are completely silent on letting retail investor use/access to NDS platform. Their line of thought/what they are communicating to clients is that it will be listed in NSE but there is already a market for gsecs exist (NDS OM maintained by CCIL) where being a primary member, they can buy/sell gsecs on clients behalf. So here I think thay have to clarify soon.

Zerodha as primary holder has access to NDS OM platform.So according to RBI circular, retail investor has to buy/sell bonds in NDS OM platform through them. For this I think they have to work on their platform to integrate this feature and bring liquidity to gsecs.

Platform will give option to retail investor, at what price they want to sell that gsec in nds om platform, whether client holds the gsec or not, option to buy gescs from nds om platform.So essentially they have to link NDS OM platform to their zerodha platform in real time like they have done it for stocks listed in exchanges.

I think zerodha will remove this grey area asap and incorporate this feature in their website/platform to let its retail investor get full benefit from gsec and solve liquidity problem.

Anyway I appreciate your risk appetite to bring new features that other brokers are not willing to.So I hope your platform for gsec will improve soon and will remove grey areas through constructive discussion and deliberation.

Lastly no gains have been made without initial hiccups/pains. Please incorporate the feature suggested to improve the liquidity problem.

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It’s noticed that there are ample of dated GSEC issued so far…Curious to know if the integrated platform could be able to access all of them to buy & sell directly (like a stock) for retail participants?

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It is not difficult in computer science.They have to integrate the database with NDS only. For noncompetitive bidding, they have already made the things. Like kite app, they can come out with another app for gsecs in coin platform.

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Hi Bhuvanesh, any update on this??

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I’ve gone through RBI Website…Found RBI Notification dt: 28 July 2016…Please refer below link…

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10533&Mode=0

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Let us wait to know how zerodha wants to implement this notification. I hope they will build this feature into their product soon.

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NDS-OM is only for primary delaers and banks. Also, the securities there trade in 5 crore lots. If there is an odd, it usually trades at a discount with patch liquidity. So NDS isn’t really a solution for retail investors.

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