This may be silly question but wanted to know, can we buy bonds using the buy button by searching for it on kite?
What is the difference when between buying it from under bids section? is the prior called secondary market buy ?
Any special charges or considerations when searching and buying vs bids section?
Will they work the same as you bought it on bids section? interest payment dates etc etc?
My personal opinion, not a CA.
In secondary market (buy button), there is also price variations due to people buying and selling. Liquidity is low. You might buy at a premium or at a discount. Calculating that is a headache (for me). On taxation,
You can buy in primary market (bids section) and hold till maturity. Less of a headache. Simple 2.5% interest, no tax on capital gains. Stored in demat form if you buy through Kite
Understood looks like the take away is buy “A bond series” completely either from Primary or Secondary don’t mix them up which then becomes a grey area for CG calculations and hold them till maturity … same GOI Bonds…
Coming back to my original question apart from Tax, Liquidity and Price Delta, is there anything more to consider, charges, payment of interest etc? (my focus is more of GS Bonds then SGB)
There are no charges for purchasing SGBs in the primary issue. However, delivery charges will apply if SGBs are bought in the secondary market.
taken from What are Sovereign Gold Bonds (SGBs)?
Delivery brokerage is 0 so I guess exchange transaction charges, DP charges, STT, etc apply.
For GOI bonds,
There are no brokerage charges to invest in government securities through Kite. However, a minimum amount of â‚ą0.01 will be charged per contract note. As per taxation rules, a service cannot be provided for an absolute 0 fee, due to which a token amount of 1 paisa is charged.
Interest is paid to primary bank account linked on zerodha