Definitive cutoff date to be eligible for interest on Government Securities

[Prayag]

I found a thread that might be helpful -

@Bhuvan

If a bond is issued on 1st Jan, interest payments always happen on 1st July and 1st Jan. Since there are no ex-coupon dates, you need to have the bond in your demat by 30th June or 31st December.

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Settlement cycle for G-Secs is T+2 days (Bhuvan clarified about that in this thread - Question about G-Secs showing up in Holdings tab) -

@Bhuvan

@Prayag

As an experiment, I bought a single unit of multiple G-Secs via Kite (specifically 737GS2023-GS and 75GS2034-GS), but I noticed that those weren’t credited into my Holdings (trade happened on Monday). I assumed that settlement was going to happen in T+1 days

T+2 is the settlement cycle.

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For SGBs as well, there is a similar T+2 days settlement cycle (Found it mentioned in this thread - SGB purchase in zerodha)

@ShubhS9

Takes T+2 working days for them to get credited to your Demat account, you bought it on 21st, will be credited to your Demat account on Tuesday end of the day.

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But I have also found a thread that talks about SGB taking T+3 days when NSDL to CDSL transfer is involved -

@VenuMadhav

@AJ007

Are you going to transfer it to my CDSL or keep it in a ‘client pool’ account.

There are a few backend processes that we’ll have to do as a DP, requires us to co-ordinate with the 2 depositories - NSDL & CDSL. Hence, the units will be credited to your own demat account on T+3 as against on T+2. We don’t hold any client stocks in our pool account, they get transferred to the respective client beneficiary.

But for the above thread, as it is over a year old, processes might have changed (especially because of changes that are mentioned in this thread - Inter Depository Transfers of G-Sec, T-Bills, and Gold Bonds are now allowed)

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Also, Inter depository transfer (NSDL to CDSL) of G-Secs and SGBs is allowed only in multiples of 100 (Found this mentioned in this support page). So there be a risk of delay in the normal settlement cycle if quantities lower than 100 or not in multiples of 100 are involved.

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Other than this, you might have to take into account an edge case scenario of the purchased SGBs/G-Secs being short delivered and extra buffer time required to rectify the issue if a problem like that arises (Very unlikely to happen but as you are creating a tool, best to mention/consider about that as well)