NCD/G-sec in Zerodha Demat - Interest/Maturity payment location?


#1

Hello Zerodha Staff,

Let’s say I decide to apply for NCD issue via ASBA.

For instance, this one - https://www.hdfcsec.com/shriram-transport-finance-company-limited-ncd (OR any NCD via primary market using ASBA).

Post allotment - I will be holding NCD units in Demat format as like any stocks. If you look at NCD - it offers Interest/maturity Payments in modes like - monthly, yearly or at Maturity.

Where will I get the Interest or maturity amount? In my bank account (which is linked Demat)
OR in my trading account (I then need to transfer it back to my bank).

I believe the same question can be raised about Gsec/Bonds etc which can be held in Dmat format. Assume I am ready to hold it till maturity.


#2

Everything - interest and the principal post-maturity will be credited to your bank account. This is the same, no matter where you apply/invest from.


#3

Thanks for reply @Bhuvanesh. While applying for this NCD via SBI ASBA, all it asks me is my demat ID. No bank details. You know like in case IPO. So I am assuming that after allotment, zerodha somehow conveys my bank to issuer company. Right?


#4

You don’t have to do anything, once you apply. :slight_smile: