I have observed what he said too. I think it’s small bug. Coin records the outflow while investing and considers that as invested value. Hence it cannot disregard the premium which is credited back to the account.
Here is an example,
I place an order for G-Sec for 100 units. The amount needed was 12000 ( 100x100 plus premium)
The Bond gets allotted but the price for the bond was say only 10000.
Now the extra 2000 blocked will be credited back to my trading account.
But the amount invested in Coin keeps showing 12000 invested.
So i thought it as just a bug as it (Coin) didn’t consider the amount (extra blocked for Bond buying purpose) credited back to me.
We are aware of this and the gsec value does not get updated on the coin dashboard as the securities are listed on the secondary market. This will be soon removed from coin.
After the price discovery at the auction, bond is allotted. Then if there is surplus of funds it will be credited back to your trading account. You can see it in ledger statement. The statement will read “Difference in Government securities purchase price reversed.”
I want to buy state guaranteed loans in coin/zerodha such as ANDHRA PRADESH CAPITAL REGION DEVELOPMENT AUTHORITY / U.P. POWER CORPORATION LIMITED. How do i do this via Zerodha?
Hello Bhuvan, I have a very naive clarification on this issuance of G-Sec.
How much difference (monetary) will it make between
Scenario A) Bidding for specific G-Sec, getting funds blocked, wait for issuance confirmation, reflection in DMAT a/c, re-credit of additional money blocked at coin for allocation, wait for G-Sec to get listed in pledge listing, use G-Sec to eventually pledge to get cash component benefit.
Scenario B) Wait for the G-Sec to get listed, buy this from secondary market (purchase like normal security) & get it in your DMAT account, pledge immediately on the allocation against transaction.
PS: Assuming that there is no major liquidity issue as such & these listed G-Sec can be bought in secondary market with minor slippages.
Could you please advise the difference between 2 scenarios from Purchase & Transaction cost implications.
It would be helpful if you can take specific example of recently listed G-Sec e.g 699GS2026-GS (6.99% G.S. 2026 issued on 17-Apr-2023)
For example, let us look at its daily traded volumes on the secondary market.
Not at all traded of most days. And even when traded, trending down to only a few thousands.
However, there appears to have been some significant trade volume
in the secondary markets for a couple of days after the GSEC was listed.
(However, there’s nothing to indicate / guarantee that
even such a nominal trading-volume for few days will exist on secondary-markets
for every GSEC that gets listed.)
@Bhuvan ++ Where can we check the Interest payment dates of SDL? As per the support article the interest schedule is published by the RBI, but can’t see anything about the Interest charges.
One can check the date of maturity of an SDL (or GSEC)
either on an exchange (BSE, NSE) it is listed in
or in any RBI or respective exchange circulars.
Interest payment on teh GSEC or SDL happens twice a year.
Once of the same day each year as the date of maturity of the bond
and another 6 months away from it.
i.e. half the coupon-rate of the bond is paid-out twice a year, until maturity of the bond.
I want to buy government securities and pledge them for margin, but when we go to coin only selected government securities are available. Q.Suppose I want to buy (9.15% G.S. 2024 IN0020110048), how can I buy particular securities in Zerodha? Q. In Zerodha approved list there are multiple securities that we can buy and pledge but when we go to coin only 2-3 securities are available. So let me know how can i buy other dated government securities.
