GOI Bonds purchase

[TradeB2B]

@MohammedFaisal @Bhuvan @Akash_Shah @cvs
There is some bond is open on coin - which bond is pledgable in that list please let me know

[Akash_Shah]

This are all G-sec. All of this can be pledged.

[viswaram]

I had requested @Bhuvan to show the ISINs also alongside each bonds so that we can know which ones can be pledged

@TradeB2B you need to compare the “security name” column with the attached image to find out which ones can be pledged according to my knowledge only 6.99% G.S. 2051 , 5.74% G.S. 2026 can be pledged

[TradeB2B]

@viswaram thanks sir , sharing your views

[viswaram]

refer the excel sheet from this location, Approved list of Securities at Zerodha. - Google Sheets

[Bharathr27]

Hi…
is it means Bonds purchased outside zerodha (Like Bonds india, india bonds, goldenpi, RBI , fixedincome.com etc) can not be pledged for margin benefit.

I was under under impression that since I am giving zerodha DP account number, After Purchase it will reflect under holding and i can pledge.

Can anybody please confirm/clarify…

[Akash_Shah]

@Bharathr27

I was under under impression that since I am giving zerodha DP account number, After Purchase it will reflect under holding and i can pledge.

Yes you are correct on that assumption for platforms which are asking you demat number will essentially be transferring bonds in your Zerodha demat. So everything will appear in Zerodha.

Only RBI retail direct platform is different as they maintain their own ledgers. So Retail direct platform will neither ask you for your demat number not transfer your bonds to Zerodha demat.

Hope this answers it

[Bharathr27]

Thank you sir… so except RBI, other Platforms purchased bonds with zerodha dp account number can be pledged for margin benefit.

[smakkar]

I had purchased 7.54% GS 2036 (754GS2036-GS) in Sep 2022 through Coin and pledged them for Margin few days later…

The 1st credit of half yearly Interest was supposed to come on 23rd Nov, but it hasn’t come in yet…

I was not expecting GOI/RBI to delay interest payment Am I missing something here with respect to Interest Payment on pledged GOI securities?

[ShubhS9]

You should get interest payment in coming days. This is handled by the depositary, they will process the payment and credit it directly to your bank account once they get instruction from the issuer. You’ll get intimation once it is processed. Depositary Participant (Zerodha) isn’t involved in credit of interest/dividend payment.

[Prabhumr]

Followup question: Interest will be credited to the bank account even if we buy G-sec from Kite instead of Coin right?

[ShubhS9]

@Prabhumr

Followup question: Interest will be credited to the bank account even if we buy G-sec from Kite instead of Coin right?

Yes, interest will be credited to your bank account even if your buy bonds from Kite.

[curiousvi]

I have some confusion about primary market of GOI bonds
Here are my questions…
Hello, you seem to be knowledgeable about govt securities so if you dont mind can you clarify some confusion?

1. Where do we find upcoming primary non competitive auction for GOI securities? I mean calendar - Press release of RBI is the reliable way to find such auctions? i.e. RBI Retail Direct
2. Once I find the upcoming auctions …what are all the options for me to buy thru primary market …I mean rbidirect is one of them? idbi samridhhi ? nse gobid? anything else ? thru Zerodha coin we can participate in GOI primary auctions?
3. Dated securities are issued every week by default ? or its not fixed but whenever RBI decides?
4. What are the timing to participate in GOI dated securiteis (please note that I am asking about GOI dated bonds not treasury bills nor state government bonds.
5. Now for secondary market - what are the options to buy and sell ? same options I mentioned above ? anything else? @Akash_Shah @viswaram @cvs @TradeB2B

[cvs]

Per my understanding,

1. Yes.

2. Yes. RBI Retail Direct is the primary way.
   …and the other avenues you mentioned (eg. Zerodha Coin) as well.

3. Whenever RBI decides.

4. NSE, BSE (eg. Zerodha Kite).

[viswaram]

Issuance calendar for Government Bonds (G-Secs/GOI Dated Securities)

Here is the issuance calendar for Government of India Dated Securities. The bidding window will be opened each week here for you to invest in these bonds. S. No. Week of Auction Amount in (₹ Crore) Security-wise Allocation 1 October 02-06, 2023 30,000 i) 05 Years for ₹7,000 crore ii) 10 Years for ₹13,000 crore iii) 30 Years for ₹10,000 crore 2 October 09-13, 2023 34,000 i) 07 Years for ₹12,000 crore ii) 14 Years for ₹10,000 crore iii) 40 Years for ₹12,000 crore 3 …

check this link. The existing GOI bonds are open for bidding. When fresh bonds are issued i think it comes with “new issue” & then FRB floating rate dynamic interest

… zerodha >> coin >> Gsec also shows the items which are open for bids

[Akash_Shah]

1. Press release is good way to track. Or Zerodha coin also shows upcoming auction details

2. RBI retail direct is the option.

@curiousvi

thru Zerodha coin we can participate in GOI primary auctions?

Yes, you can participate through Coin too
https://coin.zerodha.com/dashboard/gsec/invest

However, remember the difference between RBI retail direct and all other platforms you mentioned including coin. When you bid through this, bonds will be allotted in reside in your demat account. Once allotted you can use it as margin or trade them through NSE/BSE.
When you buy through retail direct, they are issued as entry in RBI ledger (and not in demat). These cannot be used for margin nor can be traded on stock exchange.
So be clear what you are buying Gsec for, before deciding where to buy from.

@curiousvi

Dated securities are issued every week by default ? or its not fixed but whenever RBI decides?

Not every week. RBI do issue a tentative calendar for half year or so. But again this is not fixed and dates change.
Mostly it is not every week.
Also, just because there is an auction, does not mean bonds will get issued. Sometime RBI does not like the yield and cancels the auction or devolve it on primary dealers. So it is never fixed.

@curiousvi

What are the timing to participate in GOI dated securities (please note that I am asking about GOI dated bonds not treasury bills nor state government bonds.

Auction and settlement dates are decided by RBI. RBI puts it in the press release.
Generally all platform accepts bid till one day prior evening of actual auction date.

@curiousvi

Now for secondary market - what are the options to buy and sell ? same options I mentioned above ? anything else?

If you bought through RBI retail direct, you can only sell it through that. (as these securities are sitting on an RBI ledger not in your demat)
If you bought it through any broker of stock exchange platform, securities get allotted in your demat and you can trade it like any other securities. However, some Gsec might not have enough liquidity everyday and getting out might involve some difficulties.

[curiousvi]

@Akash_Shah

If you bought through RBI retail direct, you can only sell it through that. (as these securities are sitting on an RBI ledger not in your demat)

I did not know this until now…I thought since RBI direct is asking all your details including demat - it will be delivered to demat account…hmmm I guess that is why rbidirect last traded price and broker’s last traded price (for example Coin) has always a difference? LTP at broker is always higher than rbi direct?

For cash component portion for option selling, I think Gsec buying thru broker(higher price than rbidirect and brokerage of 6 paise ) is still justifiable compared liquid bees where you can get around 3% and same hair cut?

For example even if I buy 7.15% gsec …it will give higher interest than those liquidbees/liquidetf or iciciliq -

Am I missing something?

[viswaram]

@curiousvi

brokerage of 6 paise

only applicable if you buy through coin.

purchase via kite is brokerage free, other duty applies.

[curiousvi]

If we buy from idbi samridhi , nse gobid, bsedirect - will it be delivered to our demat and we can pledge those or its like rbidirect - just a ledger entry like rbidirect

Can someone explain 091TB190919 - I know its treasury bill 91 days but what are other numbers mean and what is interest rate and how do I find current yield ?

also can we pledge state govt bonds ? and treasury bills and get collateral margin from broker?

Also what does it mean when it says odd lot on ccindia.com website?
@Akash_Shah @viswaram @cvs

[viswaram]

i dont think t-bills can be pledged

Approved list of Securities at Zerodha.

list of items that can be pledged if you are using zerodha. every other broker will have a similar list

also i dont have experience with idbi & bse…