In coin app
They block extra funds for just in case. The price of the bond will be weighted price or decided at auction.
any way to know what price to expect?
Much sure about GSECs but what about SDLs?
- Is there any history of default/not paying interest on SDL?
- Where can I check the interest payment date of SDLs and GSECs?
Very difficult to say. But as the indicative yield is 7 for the bond with coupon rate 7.06, the price might be closer to 100.
If RBI cancels the auction.
Nope. But if the Govt of India defaults, then it’s all over for us 
Will be similar to the yields on bonds of similar maturities plus/minus few basis points.
Do GSECs and SDLs pay interest directly into linked bank account or broker (like Zerodha) collects it on client’s behalf and then redistribute it?
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Paid directly to linked bank account.
The interest payment is credited directly to your primary bank account.
In coin the invested amount showing 4.96lakh. But why in my zerodha demat account the invested amount 4.74lakh?
Actual invested amount is 4.96lakh.
Sometimes, there can be a delay of a day from the exchange or the depository to credit the units for the recently purchased units. Please DM your client id, will verify and revert.
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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.
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How can someone buy Government Securities via Secondary market ? Does broker(Zerodha) provides that facility if so, what are the steps to do that ?
If I buy the G sec though broker and pledge them, will the interest still be credited to my bank account?
Yes. The interest will be credited to your bank account.
Yes, you can search/add the G-sec in the Kite Marketwatch and buy. The execution depends on the liquidity of the G-secs.
Read more: Government Securities – Varsity by Zerodha
You mean the extra amount will be credited back to my account? If yes,when and how can i see that extra amount credited back?