I got a recent NEFT credit in my savings bank with the following description (masked):
NEFT Cr-ICICxxxxx-CENTRAL DEPOSITORY SERVICES INDIA LIMITED G-MY-NAME-CMSxxxxxxxxx
How do I interpret what this deposit is for? Is it dividend or what?
PS: I recently bought a G-Sec, I’m also wondering if at all something related to that.
Should be for G-Sec or SGB Interest payment
I got my first G-Sec allotted just a week ago, interest too soon? Also I don’t have any SGB purchased linked to this demat account.
Couple of possibilities
It can be G-sec interest. Check whether amount matches with expected interest on your Gsec
G sec pays interest on fixed dates. If you bought from secondary market, It does not matter when you bought it.
Look up your particular Gsec in below list and check whether interest date was nearby the date of credit (Gsec pays twice a year, once on issue date, another after 6 months from issue)
Second possibility, do you own any CDSL shares? It might be CDSL share dividend.
Coupon payment dates for GSecs:
But wait, I realized that neither do I hold CDSL shares, nor did I buy the G-secs from secondary market. I bought a fresh issue through bidding via Coin: 7.10% GS 2029.
I should have mentioned that in the description.
And I find that this particular G-Sec indeed has interest date on 18th Oct. So possibly that is the case I believe. Can someone explain how this interest payments happen - isn’t the first interest date cliffed x months (quarters) from the start date?
When you got allotment, your price included interest which was due. Basically allotment was at the dirty price.
G Sec Interest payments are done by CDSL so the amount you received must be from GSec.
Also You’ll Receive a confirmation mail on your email address from ICICI Bank which will have detailed information regarding the same.
If any mail is not received you can correlate the source by Matching the Amount Received, Total Investment and Coupon Rate.
If you have a doubt that it might be dividend then you can Download the Tax P & L Statement from Kite Console, and you’ll know all the dividend credited to you for the selected time period.
Cool thanks Jason, Goutam, this helps clarify a lot. I’ll read up more on understanding the pricing of allotments.
This was not a fresh issue, but as such “re-issue” by RBI
RBI generally issues a specific series of bond once, and then continue to re-issue it for next couple of months as per need.
For this particular bond, it was first issued on 18 Apr 2022, and this particular tranche was reissue by RBI. Hence interest payment date is 18 oct and 18 apr (6 months from date of issue)
You can check auction press release by RBI, which provides these details
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=54519
