Sovereign Gold Bond Trading

Bonds
1

I am holding SGB MAR25 since April 2017. Now it has started trading in open market. Can I sell full or some part of it at current price in open market at current trading price. Will my order be executed, if yes what will happen after that.

2

You can but there is patch liquidity, Make sure you use LIMIT orders. Never use a market order.

3

Thanks Rahul. I tried to sell small quantity with limit order it got executed. I can see there is difference of 15 to 20 rs in bid and ask. :+1:

4

Which platform did you use?

5

One can sell on kite or any brokers trading platform.

6

I used Kite platform.

7

I was under the impression that SGBs were not traded by most platforms (including Zerodha) due to limitations on interoperability between depositories. Has this been resolved now?

8

Not yet resolved, always one can sell but can’t buy.

9

Thanks.

10

If this is so then whenever some1 is selling ; who are the buyers ?

11

Other brokers allow them, also currently we allow to both buy and sell and I believe you are aware of that.

12

I have a question - two parts to it:

  1. So if I now want to purchase say, SGB JUN 2027 from NSE, I can go ahead right? Just wanted to confirm my understanding from your statement above.

  2. If I am able to purchase it, would I also receive the assured interest rate attached to the bond (2.5%)? If yes, any documentation or formalities required, or everything will be automatically taken care?

TIA

13

Yes, you can purchase.

Yes, you will receive assured interest rate, and no there is no need of documentation at all.

14

Great, thanks a lot!

15

@siva can I pledge sovereign gold bond for F&O trading? I don’t see this instrument in the list of approved security available for pledge?
if ans is “no” - is there any plan to include SGB for pledging?
if ans is “yes” - will the pledged amount be part of cash component or it will be a normal pledge?

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16

Not there for now to pledge, will try to allow it soon,if possible.

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