Why I am unable to buy SGB in Zerodha


I checked today with zerodha. As of now, it is still not allowed.

Try different broker who has NSDL pool and who has opened your account in NSDL.

Zerodha only open account in CDSL pool.


Thanks @VM1 for your reply,

Could you please tell why broker can’t open account of client in both NSDL as well as CDSL so that such issues never arise ?


Are capital gains on SGBs exempted from tax when we buy these bonds from the secondary market?


Brokers such as HDFC securities have worked around the issue to offer a seamless service to their clients. Deepak Jasani, Head of Retail Research, HDFC Securities, says: “HDFC Securities allows both buying and selling in SGBs through the secondary market. If the SGBs are received in a depository that is different from that of the investor, we re-mat SGB units into physical certificates and then demat with the depository in which our client holds his demat account and then credit the SGBs in his account. This takes up to 15 working days, and also involves some costs that are currently not recovered from clients.”

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Can Zerodha also provide a work around to allow trading of SGBs in the secondary market? @nithin


This was a limitation due to inter-depository transfers not being allowed. The depositories recently started allowing this and should be possible in the next couple of months.

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OMG…Its takes then 2+ year to try to resolve a inter-depository issue, and they want a bustling gold bond market :frowning: I faced this issue today, and ended up getting this link in the reply to my support ticket. Seems as of today, Zerodhs still does not support buying SGB from both exchanges. Was thinking i can buy from BSE since it would come to the brokers CDSL account.


If the problem is sorted then why will it take another couple of Months? Any specific reason? There is reasonable trade volume in Secondary, and day-by-day increasing that means someone has already sorted out the issue.


This is pathetic. ZeroDHA is now allowing trading of Govt Securities via the secondary market. When will it allow trading of SGB?


@Krishnarjun, as explained by @Bhuvanesh in the thread earlier, we will allow buying of SGB and Government bonds from the secondary market once inter depository transfers are allowed by the Depositories.
However, we have no restrictions on selling your existing holdings, as this possible in the current framework.


@MohammedFaisal , ZeroDHA has already started allowing retail investors to trade in Goverment Bonds and T-Bills. Refer below article.

so why not SGB’s?

Also if you see @Bhuvanesh recent reply, he also mentions govt recently started inter depository transfers.


“Recently” being the operative word. The depositories announced that they “will” be ready soon, but they aren’t yet. But you can be sure that when they are we will allow buying!

Also, we are allowing only selling of G-Secs in the secondary market not buying because of the same issue. So, yeah, before you go throwing around words like pathetic, better to get the facts straight!



If “recently” is an operative word , “started” is in the past tense. Which basically means it is already operational. So yeah, please choose your words carefully, otherwise people will get misguided. Which leads to frustration, which leads to words like pathetic.

It doesn’t help when you see the same security in Kite being traded at discount with good volumes and you can’t do anything other than sit and watch. This same issue makes the primary market look so unattractive compared to the secondary market. Its a double whammy.


You should be, hopefully pretty soon.


Any update on this? @Bhuvanesh


any update on this? @nithin
when will we be able to buy SGB from Zerodha?


Only when depositories start allowing inter depository transfer.


Inter depository transfer is allowed i think i read somewhere. No?


RBI allowed it but still these depositories need to come to common terms.


I have closed my hdfc securities demat & trading account and transferred my portfolio to zerodha. Only SGB is yet to be transferred. Everything else has been moved to Zerodha. When I enquired hdfc securities they told SGB will take a month or so. Let’s see.

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