Charges to buy NCD through Goldenpi

General
1

Hi @GoldenPi

  1. What are the charges to buy NCDs/corporate FDs from your portal? for say, I want to purchase an NCD having worth of 10 Lac.
  2. Are the state guaranteed NCDs are as secure as SDL/GSEcs? for e.g. (INE0M2307172/andhra-pradesh-state-beverages-corporation-limited)
  3. Also please tell me what are the other/associated charges or commissions I have to pay.

Thanks

2

Hi Shivam,

1. What are the charges to buy NCDs/corporate FDs from your portal? for say, I want to purchase an NCD having worth of 10 Lac.

GoldenPi doesn’t charge any fees or brokerage for purchasing Bonds/ NCD IPOs or Corporate FDs through their portal.

2. Are the state guaranteed NCDs are as secure as SDL/GSEcs? for e.g. (INE0M2307172/andhra-pradesh-state-beverages-corporation-limited)

State Government Bonds are secure Bonds as the State Governments act as a guarantor for such issues and the guarantee given by the State Government is unconditional and irrevocable.
You can refer to this blog for more details.

3. Also please tell me what are the other/associated charges or commissions I have to pay
There are no commissions or charges you have to pay while purchasing the Bonds.

3

Out of curiosity how does golden pi make money then?
Some AMC or other charges?

1 Like
4

seems @GoldenPi is not active here.

@pmsingh Thanks for reply.
for eg they are asking me to pay ~1021000 (10 lac 21 thousand) Rs for the face value 1000000 (10 lac). Why they are asking ~21000 Rs extra?

5

That is most likely because of the accrued interest on the bond.
You can view the breakdown of the price in golden pi :slight_smile:

6

Thats the bond price on the secondary market. It includes the interest accrued.

7

Well, this is what makes the Bonds transaction interesting!

The Bonds are issued at a Face Value and traded in the secondary market which can be at par, discount, or premium and this is termed as Principal Amount.
Eg: the ₹10lac face value Bond can trade at par-₹10lac, discount- below ₹10lac say ₹9.90lac, or at premium say ₹10.20lac depending on various market and economic factors.

Also, in the secondary market trades the settlement amount of the Bond includes the Principal Amount and the Accrued Interest.
Accrued interest means the interest that is earned but not yet received and this has to be paid by the Bond buyer upfront to the Bond Seller as on the next interest payout date the Bond Holder will receive the full interest amount from the issuer.
As you can also see the in the image highlighted here:
image

So your Minimum investment or the purchase amount for the Bond is inclusive of Principal Amount and the Accrued Interest.

The best part is despite all these secondary market price variations in the Bond, on maturity you will receive the complete face value of the Bond, whether the Bond trades at a discount or premium, the face value will be returned to you along with the fixed interest which you receive during the tenure.