For SGB what is primary market and secondary market and what is the list of primary & secondary market & which market is better
Primary market is where you can bid for newly issued tranches of SGB, secondary market is basically NSE and BSE where the SGB’s issued in primary market are listed for trading, here whoever has bought SGB’s during the issue can sell if they want to or whoever missed out can buy, just like you buy stocks.
@ShubhS9 To buy primary market i need to buy it from here https://zerodha.com/gold/ am right and how can i buy from secondary market a quick search resulted this URL https://www.nseindia.com/market-data/sovereign-gold-bond
Edit
do i get any additional benefits in secondary market like Gold’s market returns + Fixed 2.5% per year on invested amount or it is like just buy and sell like stocks
You will be redirected to Coin, from there you can bid for the issue whenever it is open.
This is list of all the SGB’s listed on Exchange, you can search for SGB in Kite, add it to your watchlist and buy from there as you buy any other stock.
Yes, returns are same as Gold market returns plus you will get 2.5% interest as well.
@ShubhS9 what is the holding period is it 8 years or lower consider this one SGBMAY26 from NSE https://www.nseindia.com/market-data/sovereign-gold-bond website what will happen after maturity
Yes the maturity for SGB is 8 years from time of issuance. This SGB you have mentioned here “SGBMAY26”, matures in May 2026, upon maturity the SGB will be extinguished from your Demat account and amount equal to the price of Gold at that time will be credited to your primary bank account.
You can know more about SGB here.
@ShubhS9 currently SGBMAY26 is trading at 5048.99. Need slight clarification on amount equal to the price of Gold at that time will be credited to your primary bank account let say the gold at time is at 6500 so 6500 will be credited in my bank account right
Yes.
Also, you can read the point No. 21 on the SGB FAQ sheet I shared with you.
@ShubhS9 hai i bought july SGB from the market SGBJUL28IV-GB i want to know for this series which month they will distribute the dividend
The interest is paid out every 6 months from the date of issuance of the SGB. You can check out the dates here.
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@ShubhS9 what type of tax will it include if we buy from zerodha coin during new issuance and what will the tax when bought from NSE or BSE
After maturity will it apply any taxes in zerodha coin or NSE/BSE
If you subscribe to the new issue and hold until maturity, there will be no capital gains tax.
Regarding benefit of exemption from capitals gains for purchasing from secondary market, there isn’t clarity over this.
Yes. U r eligible
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@ShubhS9 The nominal value of current issue fof sg bond by govt is set to bet 5197 .However I see lot of sgbs trading around below 5000. Does that mean it is advantageous to procure bonds from secondory market.
Yes.