Ask us anything about investing in government bonds, treasury bills (t-bills) and state development bonds (SDLs)

CCIL trade generally happens in lot size of 5Crs. Pretty tough for retailers to participate in that lot size.
There is an odd lot market for smaller size, but again there are too many complexities for average retailer to participate in it.

that exact lot only I was saying why they cant reduce it to minimum 10,000 . If CCIL reduces that then retail can easily participate in bond market

Hi , I see an error in SDL date and it is not listed today 3rd July and instead marked as 6th July, Can you correct this, I see right info at RBI press release data

Hi @Ashwin_Raj

As per the issuance calendar, July 4th is the auction date. The bids close one day prior to the auction date. (i.e., today)

I had bought RBI bonds in Feb, but the interest is still not credited, usually credited around July 1st, any one else facing this same issue, do you know who to contact? Pls help, thanks!

@ShubhS9

Hi , if i bought Gsec at the price of 103 and bond face value is 100.
When it gets mature , will I got my 103 or 100 at the time of maturity?
If we got only 100 face value so I lost extra 3 rupee ?

Upon maturity, one will receive the amount equal to the face-value of the bond.
The amount may not be equal to the amount one initially paid to purchase the bond.
(eg. if purchased on the secondary markets like BSE/NSE at a premium/discount.)

I have a question, kindly clarify

Suppose I bought a Rs 100 bond in high interest environment and bonds are trading at 6% yield. Now after some time, interest rate changes such that bonds are trading at 3% yield. So will the bond be priced at 200 (ignoring the maturity principle) in secondary market to match the yield?

Interest will be credited within 15 days from the interest payment date. You can check interest payment dates for all bonds here: Interest payment dates for government bonds (G-Sec)

IIUC, you probably meant to say that new bonds are now being offerred at 3%.
( “traded” implies being sold and bought on the secondary markets. )

Yes.

Another possibility is that the previous bonds may not be traded on the secondary market at all.
Often happens when as the logical price ends-up being outside of the circuit-limits (-/+ 5% or -/+10%) of the LTP of the bond on the secondary market like NSE or BSE.

Continuing the discussion from Ask us anything about investing in government bonds, treasury bills (t-bills) and state development bonds (SDLs):

I WANT TO INVEST IN NHAI INVIT (NATIONAL HIGHWAY AUTHORITY INDIA) BONDS BUT HOW WHERE I DON’T KNOW ISSUE DATE HOW TO KNOW NEXT ISSUE DATE I WATCHED NITIN GADKARI’S INTERVIEW WHERE HE SAY ON EVERY 15 DAYS WE WILL ISSUE BONDS I DON’T UNDERSTAND THAT MUCH HELP MEE !! I AM BEGINNER IN THE MARKET AND LEARNING

Any specific reason you want to invest in only this specific bonds?

Yes, he said that, but it wasn’t followed, like so many other things which ministers promise and then forget about :slight_smile:

I would suggest, first understand what is your investment need and accordingly try to find a product which suits you.
Also, depending on your age, investing in bonds for 20 years or so at 8% may or may not be best decision, so think through it.

Just don’t get lured to a product because someone (in this case minister) said its great opportunity.

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@Bhuvan Are state psu bonds equally sovereign as GSecs or SDLs ? Ie what are the changes of default for State Psus?

Nope. There’s no explicit sovereign guarantee for PSUs.

Hey wait a minute, so state psu’s like tamil nadu power finance don’t have any guarantee from govt? Means nobody is gonna save them if they can’t pay the bond holders?

They aren’t explicitly guaranteed unlike Gsecs. Will the govt bail out a PSU if they ever go down. There’s an assumption that PSUs have an “implicit” guarantee. Whether the implicit becomes explicit remains to be seen. Which is why PSUs yield a little more than Gsecs.

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@Bhuvan Thanks for replying.
Is there anyway to find the fundamentals of state PSU? ie the default risks and past performances.

Check

HI

I have 8.28% GS2032 bond. This bond has bi annual payout on 15 feb and 15 aug. While i had gotten the payout on 15 feb , got nothing on 15 aug. Why would this happen ? Generally how much time does it take to credit the interest from the date of payout

The interest payment will be credited to your primary bank account within 15 days from the interest payment date. You should get the payment in the coming days, 15th August (Independence Day) and 16th August (Parsi New Year) were holidays.