I checked on RBI - it shows indicative yield and settlement price for example 7.41 % 2036 is Rs. 108.10
on NSE gobid same scrip shows price of 109 Rs.
on bsedirect it shows Rs. 107.73 Rs. Why it is different like that?
Also if we bid/buy on bsedirect or nse gobid - it will be delivered to our demat and eventually we can pledge those correct? I understand with rbidirect that is not possible.
For new issue govt stock 2030 - it shows indicative yield of 7.18 % - so its not fixed …why is it indicative ? and price @Akash_Shah @TradeB2B @cvs @viswaram
Different markets = different sellers, volumes, and prices.
Also, do check if each of those portals shows a clean-price or a dirty-price.
One needs to initially link one’s Demat account on these portals during registration,
and will receive any purchased bonds in the demat account itself.
[ Source (NSE) ]
[ Source (BSE) ]
Yes, pledging is possible with securities held in one’s Demat account.
- Subject to the actual list of securities that can be pledged (and their respective haircut).
- Also, it apparently takes 1-2 months before a newly issued GSEC is allowed to be pledged.
The actual coupon-rate/yield of a bond being newly issued,
is determined by the initial competitive bidding for the bond.
In case you haven’t already, checkout this chapter on GSECs.
@curiousvi Hey sorry for hijacking your thread.
@cvs Would it be foolish of me to buy the new bond listed today namely NEW GS 2026 in coin. I need to buy some bonds for pledging purpose. Thank you for the valuable input in advance.
I am in the same boat but I guess @cvs already mentioned that it will take about 1-2 months before you can pledge
so that is one of the problem.
Yeah my friend I am so confused as to what to do for the cash equivalent. Sometimes its good to have a cash flow like that of a bond. And as it considered cash equivalent the need arises for me to only maintain some balance in cash to cover the MTM losses.
I also dont want to go with very long term bonds like more than 5 years. I am confused totally.
Why you dont want to go for long term bonds i…e more than 5 years?
Just want to try out with short term bond. It will be my first time buying the bond for pledging purpose. No particular reason.