Buying TBills on Coin platform

[Shishir_K]

I was trying to look at GSecs on Coin. From the varsity documentation I understood that TBills are issued at discount and redeemed at par.

When we try to keep a purchase order on Coin, the amount shown for 100 Units is 10000, i.e. 100 per unit. I was trying to understand how is this at discount?

Assuming an indicative yield of 3.31% for 91 days, what should I expect as a return amount for say a unit on maturity? Also would ordering on Coin ensure my order goes through (provided I have funds in account) or do we have to pay via any other mechanism (Got confused with biddings).

Similarly for a new dated bond, the price of 100 units is 10500, while the facevalue on RBI site seems to suggest 10000. So why is there an extra charge of 500 which is equivalent of 5%?

I wasn’t sure what I am missing out or if something misunderstood. Thanks!

[Bhuvan]

@Shishir_K

Assuming an indicative yield of 3.31% for 91 days, what should I expect as a return amount for say a unit on maturity?

You’ll get to know the actual price post the RBI auction and you can calculate the actual returns, here’s how. But broadly, the returns will be a few bps +/- of the indicative yield.

@Shishir_K

Also would ordering on Coin ensure my order goes through (provided I have funds in account) or do we have to pay via any other mechanism (Got confused with biddings).

Funds ins your trading account will be deducted.

@Shishir_K

Similarly for a new dated bond, the price of 100 units is 10500, while the facevalue on RBI site seems to suggest 10000.

FV is 100 and you can invest in multiples of 100.

@Shishir_K

So why is there an extra charge of 500 which is equivalent of 5%?

Not sure what you mean. But I’m guessing you’re referring to this. When you submit a bid, since the auction price is unknown, the exchanges block an extra amount. Based on the actual yield discovered in the auction, your money will be refunded.

[Shishir_K]

@Bhuvan

Not sure what you mean. But I’m guessing you’re referring to this. When you submit a bid, since the auction price is unknown, the exchanges block an extra amount. Based on the actual yield discovered in the auction, your money will be refunded.

Thank you @Bhuvan that helps!