Bought Sovereign Gold bonds from secondary market

If I buy SGB(Sovereign Gold bond) from kite by placing an order to buy it from a seller on the kite, what are the changes that would take place in its tenure period? As RBI has announced that the tenure will be 8 years, so if I buy SGB from a seller who has bought it on Sept 27, 2019 and if I buy from him on Sept 27, 2020.
Q1. then the tenure of SGB for me would be 7 years or 8 years?
Q2. how I would be getting the digital bond certificate in my name?

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The tenure for SGB is 8 years, If you buy after 1 year in secondary market tenure for you will be 7 years, 8 - 1.

@Bhuvan can you.

Q2. Why do you need that certificate. You should be able to see the bond in you CSDL account…

If you are buying through Zerodha, SGBs are held in demat form, no physical certificates.

Thank you for the clarification.

Yeah understood it now, thanks btw.

If we buy SGB in secondary market, do we get all advantages like Capital gains, 2.5% interest and etc.

yeah @ShubhS9, @Bhuvan can you please answer this, I also have this doubt.

Yes, if you hold until maturity you will get Capital Gains benefit and yes you get 2.5% interest per 6 months as promised. @Prateek_Mittal1

How many days would it take to show in CDSL account?

I still got the certificate via the Email (I bought directly from Zerodha before the listing and not in the secondary market). But yes, the certificate is not so important. Since we get the units on our Demat account.

If I buy SGB’s in secondary market I am clear with that I will receive 2.5% interest to my primary bank account.

My question is:

  1. How long should I keep this in my holdings to receive interest. For eg: I am holding for 3 months and sold to someone else then he holds that for 3 months, in this case who will receive interest ?

I assume the person who holds the unit on interest payment date will receive interest, it may be holding for even 20 days. Is this assumption right ?

@Bhuvan can you.

U r correct

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Will be paid semi-annually from the date of issue

The price you see is a dirty price i.e will include the accrued interest for the holding period.

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