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.”


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.


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.