How to pick good Gsec for pledging in zerodha

Bonds
1

How to choose a good Government security (Gsec)?
what are the criterias and which all parameters to look for?

I plan to pledge the gsecs in zerodha for trading.

Thanks

2
3

First, decide the duration. Do you need something which will finish in 3 years? Or 15 years?

Then, I will suggest pick the ones with higher liquidity. Don’t just bid on market price, but perhaps 1 or 2 paisa higher than the best buyer and wait… You will find liquidity data here: Statistics - NDS-OM Trade Analysis I will suggest to pick from top 3-4 in this list only.

It does not matter much if the security is paying 6.67% or 7.36% interest, as that is covered in the current price. e.g. for the same interest dates, the 6.67% bond will be trading at lower value (almost 1-2 rupees lower) than the other one.

One last thing: before you buy, double check if that security is approved for pledging in Zerodha. Most are, but just to be doubly sure.