How do I differentiate between GOI bonds on Kite

Bonds
1

Hey guys,

I see a bonds section under bids - shows me few times Tbills, SDL and G sec. My questions are the following :

  1. Is this the primary offering ? Meaning I am purchasing this directly from the government(s)?
  2. Is this the secondary market ?
  3. Do I need to use UPI for this or can I use the funds I keep in Account → Funds section?
  4. Can I keep the bond till the maturity and so govt gives me back the capital at the end of maturity period ? Or do I need to trade it ? (I do not wish to trade it)
  5. Does returns go to the kite account section and I need to withdraw it or directly to my bank ?
    Many thanks,
2

Lot of your questions are answered here - Trading and Markets

  1. Yes. Bonds in bids section is primary market
  2. It is not secondary market if you bid for it in the bids section. If you buy it like a normal stock it is secondary offering. That is, by searching and clicking buy like a stock.
  3. Not sure. I think you can use funds in account section and it is blocked when you bid.
  4. Better to hold till maturity. Less of a tax calculation headache since there will be difference in market value and what you bought it for. But you can always sell whenever you want to. (source)
  5. Interest is paid to bank account linked to zerodha. On maturity, the bond is automatically removed from demat account by the government, and amount is debited to primary bank account linked on demat within 15 days. (source)
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3

This is primarily offering. These bonds are auctioned by the RBI.

The funds will be debited from your trading account.

You can hold the bonds until maturity. Upon maturity bonds will be automatically debited from your account and proceeds will be credited to your primary back account.

Interest payment is credited directly to your primary back account. And as explained above, once the bond matures, proceeds too are credited to your primary bank account.

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