Wanted to understand the basis of the indicative yield that’s displayed on coin for gsecs.
The indicative yield for the below security was being shown as 7.48%. However, this got allotted to me at a premium, so clearly the yield is less than 7.1% (too lazy to calculate it right now).
Isn’t the 7.48% number then misleading?
202597 is dirty price (includes interest accrued). Allotment is @97.97 i.e. 195940 (2000*97.97). So yield comes out to be around 7.50%. rest is interest accrued Rs. 6657. You will be receiving interest worth 7100 tomorrow (18th october 2022 is coupon payment date).
you can find auction results here and coupon payment dates here.
Thanks for sharing. The links are really helpful.
There’s also a significant variance between the gsec’s market price and the LTP displayed on console. @ShubhS9 is there any particular reason for this mark down?
I’ve pledged the units and am assuming the margin will be available on the console’s LTP. This may lead to unnecessary margin shortfall and forced squaring off of positions.
Will check and get back to you on this.
Were you able to check this? The price is more than 10% lower than market price on console now.
And for taxation purposes, this too will be considered as income, right?
That’s kind of funny. I received back the so called 1st interest payment a day after my investment, but 30% of it now belongs to the govt!
No wonder why many of the gsecs offered in auctions happen to be close to the interest payment dates.
I think, you will not be liable to pay income tax on accrued interest till purchase/allotment of securities. Only interest for the period you actually held the securities, will be taxable. But I am not tax expert. Following link also says the same.
rest @quicko @Jason_Castelino can clarify.
Agree with what’s in the article. Please do consult a tax expert to file your income tax returns. He will get this done.
Hello @abcd5662/ @jhakkastrader,
Yes, you will not have to pay Income tax for the full interest received by you (i.e. 7100). However, the interest of 443 (interest for your period of holding) will be taxable. When you sell these bonds the acquisition amount shall consist of face value and premium paid on a bond.
Margin is provided based on previous day’s price which is fetched from the CCIL. This doesn’t change through out the day and won’t affect the margin provided to you for the day.
The LTP on Console is fetched on a real time basis from the exchange. This will change everytime you refresh the holding page.
That’s the whole point. It isn’t working the way you have explained here. The console price for the above mentioned gsec is static at 93.2 for over 2 weeks now, while the bond is consistently trading over 100. Same observation for the 2027 gsec I purchased.
Please have a look at the shared screenshots in the post and help resolving the issue.
Also, last week’s allotment is yet to appear on console. Was expected to be there by yesterday itself.
There’s a lot of issues with gsec treatment on kite and coin. @nithin - fyi, as I recently saw a related tweet of yours, and so many firsts time buyers might make purchases on coin.
I could have made few bucks if allotments had appeared in console on Monday. Don’t know why it is taking so much time. first time gsec purchase has not been credited to Demat on monday. never faced this issue before.
This is because of the holiday on Tuesday. Altoment should happen today.
We’re investigating this. Will provide an update here soon.
RBI settlement date showing as 07th Nov
https://www1.nseindia.com/products/content/debt/ncbp/ncbp_issues.htm
Mon, Wed and now Thu also gone.
So the price that Console shows is either the one of NSE or BSE. Since GSECs aren’t liquid on both the exchanges, the difference seem to be huge.
Can you provide us your client ID? These Gsec units weren’t yet credited which is why it wasn’t showing up on Kite. We’ll need to check this.
Again an issue with last week’s allotment. 754GOI2036 visible in kite holdings but not in console. Need to pledge it so please have a look.
