Is there any difference between the recently launched platform offered by RBI as ‘RBI Retail Direct’ and Govt. Bonds offered on ‘Zerodha Coin’ platform ?
Those bonds aren’t issued in demat form and you get access to NDS. On the standard market, which where most of the trades happen, the minimum size is Rs 5 cr. But there’s an Odd Lots market where the minimum is Rs 10,000 which is what retail get access too, but there’s very little activity
I personally think both RBI and SEBI should’ve worked together to make them more popular on the exchanges. This is just further fragmentation of an already illiquid G-Sec investing ecosystem.
@Bhuvan if I need to transfer my gsecs from demat to my rbi retail gilt account how do I initiate request with zerodha ?
The process for transferring government securities (G-secs) from Zerodha to RBI retail direct account is explained in the article How to transfer government securities (G-secs) or Sovereign Gold Bond Scheme (SGB) from Zerodha to RBI retail direct account?
Yeah I got response after I raised ticket with zerodha. It seems they added this link later as I could only find demat or inter depository transfer before. Nevertheless thanks.
Though I wished process to be completely online and free of unnecessary hassle.
Is it possible to do the opposite? That is, transfer gsecs from RBI Retail Direct to a demat account (e.g. Zerodha)?
You would have to ask rbi retail support staff they are quite responsive. But if you want to transfer for trading gsecs instead of holding till maturity like me, liquidity in NSE is no better or worse than liquidity in nds odd lot. But in rbi gilt you don’t need to worry about broker scam and broker default or using your gsec as collateral unlike in that of demat. I have gsecs(same series) in both.
The transfer of G-secs from the RBI direct account to the Demat account is not allowed.
I’ve been doing some digging. I feel there is some confusion. Dematerialisation of GSecs are indeed allowed. Otherwise, what is the point of GSecs being listed on NSE and BSE.
Here’s a snapshot from CDSL’s website.
It clearly says I can transfer from my RDG to Demat.
Would request anyone from zerodha to explain the process in detail.
The Retail Direct Gilt (RDG) Account is not mentioned in the link that you have shared. It only talks about SGL which is different from RDG.
The link you provided is about dematerialising G-secs, which has always been operational. The rematerilisation of G-secs is expected to begin in about two months, according to CDSL.
Our team had contacted RBI about this a few months ago. Only the transfer of securities from a demat account to an RDG is currently possible, explained here. RBI has not yet begun setting up the process of transferring securities from RDG to a demat account, and this will take time.
Is this what you were asking about?
Thank you for your extra effort in replying to my query @Tharun_Iyer_M ! Appreciate it.
I’m still confused about certain things (all this nomenclature is really confusing)
Doesn’t gsecs purchased from RBI’s retail direct platform (and held in RDG) mean that they are kept with the RBI in SGL form?
If possible, can also refer to page 9 of this document from NSDL (maybe give the whole document a read)
(I’m assuming CDSL will follow similar procedures)
It talks about - "An investor may be holding balances with any other entity in a book entry which the investor
may like to transfer into NSDL depository account. Even this process will be handled through
SGL means the holdings are kept as a book entry with RBI, no?
Later edit - found this document on CDSL’s website as well.
Hey @Tharun_Iyer_M! You’ll get back to me on this, right?
I’m strongly considering parking a major chunk of my cash margin in GSECs. I could really use some guidance here.
Yes yes I’m looking into this. Will revert asap.
Hey @mynk ,
Just a quick update that @Pawan is in touch with the depository and will update here once information regarding this is obtained.
Let me try to explain from starting.
The screenshot and circular that you are referring to explain how you can transfer your SGB/GSec/SDL from one Demat a/c to another Demat a/c inter-depository.
For more details, you can refer to this link.
Now, come to RDG-RBI Retail Direct Gilt Account.
Currently, RBI allows only to transfer of the SGB/GSec/SDL from investors Demat A/c to their own RDG account.
For more details, you can refer to this link.
*Note: Transferring SGB/GSec/SDL from RDG to Demat A/c is not supported yet. Once RBI starts this feature, you will get the information on your RDG platform. We will also, try to explain once this option goes live.
Is there any update from RBI on transfer of G sec bonds from RBI retail to demat.
As mentioned in this thread -
Currently the status is the same and you cannot transfer the G sec bonds from RBI retail to demat account.