Selling GSecs before maturity date

[Subhasish]

I have purchased few GSecs through Coin and also pledged it for trading in Console. However not able to figure out, how to sell it if need arises. As liquidity of GSecs in Secondary Market is almost not existing, could anybody please throw some light in this regard ? @nithin @siva-reddy

[siva-reddy]

@Subhasish

As liquidity of GSecs in Secondary Market is almost not existing, could anybody please throw some light in this regard ?

Try placing order and hope someone will buy it, if it is urgent then you can place for little less price than theoretical, it should get traded, I believe you can get a loan also by pledging it.

[Shivam_Gupta]

Hi @Bhuvan @ShubhS9 @siva-reddy

I purchased G-Secs through KITE (Zerodha), but I’m unable to sell them since there are no buyers and no LTP available, so I can’t place a GTT order either.
If I need immediate liquidity and am willing to sell even at a heavy discount. What’s the best way to sell them quickly or can place GTT?

[BB789]

@Shivam_Gupta Try https://samriddhigsec.idbi.bank.in/

For current market price: Home Page - CCIL - The Clearing Corporation of India Limited

[cvs]

@Shivam_Gupta

If I need immediate liquidity and am willing to sell even at a heavy discount.

On BSE/NSE one the circuit-limits (5-10%) will prevent one from liquidating GSECs at deep-discount unless their LTP is already around such a discount to the GSEC’s face-value.

Thus, it ends-up being a matter of repeatedly selling minimal quantities at lower-circuit-limits, as the limit further decreases each date based on LTP = lower-circuit-limit value.

Previously discussed in detail in this topic thread in the context of illiquid SDLs.

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@BB789

Try https://samriddhigsec.idbi.bank.in/

What are the circuit limits of GSECs on this portal? Are there any?

[Bhuvan]

@Shivam_Gupta

I purchased G-Secs through KITE (Zerodha), but I’m unable to sell them since there are no buyers and no LTP available, so I can’t place a GTT order either.
If I need immediate liquidity and am willing to sell even at a heavy discount. What’s the best way to sell them quickly or can place GTT?

This is the only alternative Selling GSecs before maturity date - #4 by BB789

[BB789]

I don’t think there are any circuit limits. I believe this is a retail front end to NDS-OM of RBI.

[BB789]

https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=711

See Q8.

if Samriddhi fails, you may try selling it to bank. Or you can try to get a loan against it. GOI bonds are usually approved collateral. Like 12% loan maybe cheaper than selling at 30% discount.

Wonder if zerodha capital offers loan against GOI bonds? @Esha

[Esha]

Right now, this won’t be possible, since the instance on the Frappe system allows only one haircut on the securities, so we only allow equity. Whenever we introduce loans against debt securities, we’ll look into the possibilities.