GOI Bonds purchase

[Akash_Shah]

@curiousvi

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 ?

last number are date when this T-Bill mature i.e. 19 Sep 2019 (This one has already matured)
Generally when fresh T-Bill is issued, an indicative yield is available on coin (or from when you buy) after that tracking it requires some effort. But yes CCIL is good source to check for T Bill yields.

@curiousvi

Also what does it mean when it says odd lot on ccindia.com website?

This is how it is defined

[Akash_Shah]

@curiousvi

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?

you are just thinking from margin perspective. But there are other risks.
7.15% G-sec is long dated security whereas others are short term securities.

long dated security carries duration risk. If interest rate continues to rise (like it is happening currently) it will result in loss of capital. So unless you intend to hold Gsec for its entire duration, you need to consider these risks.

[curiousvi]

@Akash_Shah

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.

Just want to confirm - if we buy Gsec thru idbi portal - it goes to our demat account and we can pledge them to get cash collateral margin correct?

[pankushri]

@TradeB2B can you confirm this?

[TradeB2B]

@curiousvi @pankushri yes its will go to your demate account only , and same you can pledge

[curiousvi]

@cvs

definite plus-points of buying GSECs on the secondary-market/exchange :

And you can pledge to get collateral margin

[ADITYA_DORA]

Hi,

Kindly guide me in understanding if the GOI bonds have any broker limit from Zerodha to pledge. If yes the document “list of securities that can be pledged” doesn’t mention if the limit is reached on Zerodha. Kindly share some light.

Thank you

[Gnome]

No boss. No limit. If it is there it will be mentioned.

[AdityaReddy]

I want to buy longterm gsec now, pledge those to avail margin…do the regular trading and tarde those gsecs when their prices go up…is there a way I can do that?

[smakkar]

Yes using Zerodha itself… E.g. Search for 699GS2051-GS, place a limit (or market) order and wait for it to get filled… Pledge them once in Demat, trade intraday or write options using that margin etc etc. And then wait for the interest rates to fall to book capital gains