How Govt. Securities are Redeemed

Bonds
1

What is the procedure of redeeming a govt. security/ SDL on maturity lying in my demat ?
Does the principal amount gets credited to the bank account linked with demat automatically or there is some manual process ?
@Akash_Shah @ShubhS9 @Bhuvan

2

I think it could be just like treasure bills. After the maturity, proceeds will be credited to the bank account.

3

Hy @Stonecold

Upon the maturity, the Government debits the securities from your DEMAT automatically, this is called ‘Extinguishment of Securities’ and the par value gets paid to the bank account linked to your DEMAT account.

In case you want to exit it before the maturity you can add the particular security under the market watch and exit through secondary market.

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