Invest in government bonds and sovereign gold bonds on Kite

September 12, 2023

An ideal portfolio should have a mix of multiple asset classes like equity, debt, and gold. Diversification helps you reduce risk and behave better.

Everybody knows how to get equity exposure, either through stocks or equity mutual funds. But when it comes to debt, most people don’t know all the available options.

If you want debt exposure in your portfolio, government bonds are the safest option. Treasury bills (T-bills), GOI dated bonds (G-Secs), and State development loans (SDLs) were available for investment on Coin, but we have now moved them all to Kite. Click here to invest.

 

Treasury bills (T-bills)

T-bills are short-term debt instruments issued in maturities of 91 days, 182 days, and 364 days. They are ideal for short-term needs. Treasury bills don’t pay any interest. They are issued at a discount and redeemed at par. For example, a 91-day Tbill can be issued at Rs. 98, but you will receive Rs 100 when it matures. The difference of Rs. 2 is your return.

GoI dated bonds (G-Secs)

G-Secs are long-term bonds issued by the government. They are the safest type of debt instrument and are guaranteed by the government of India.

  1. G-Secs are issued in maturities ranging from 5 years to 40 years.
  2. They pay a fixed interest rate that is paid out every 6 months and credited to your bank account. The principal is paid upon maturity of the bond. 
  3. There are no lock-ins for these securities. All G-Secs, SDLs, and T-bills are listed on the exchanges, but liquidity is an issue. So, ideally you should invest if you intend to hold these bonds till maturity. 
  4. These bonds can also be pledged and are considered as cash equivalents.

State development loans (SDLs)

SDLs have all the same features as G-Secs. While G-Secs are issued by the RBI on behalf of the central government, SDLs are issued by state governments. A common question investors ask is if SDLs have the same government guarantee. Shaktikanta Das, the RBI governor, clarified in 2019 that state development loans have an “implicit sovereign guarantee.”

How to understand government security symbols?

Treasury bills (T-bills)

For T-bills, you will see a symbol like “91 Day T-bill.” This is self-explanatory.

G-secs

RBI reissues existing bonds and also issues new bonds periodically.

For reissued G-Secs, you will see symbols like 7.18% GS 2037.

7.18% is the interest rate or coupon. This interest is paid out twice a year, and you will receive this in your bank account.

GS refers to government security

2037 is the maturity year.

If a government bond is being issued for the first time, you will see a symbol like “NEW GS 2033.” The yield is unknown when a government bond is issued for the first time. RBI conducts an auction to discover the yield, and once it’s discovered, the bond will then be allotted to you at that yield. The interest rate and yield will be the same for a new bond. So, in the case of a new bond:

NEW GS refers to a newly issued G-Sec

2033 is the maturity year.

State development loans (SDLs)

The symbols of SDLs are similar to G-Secs. For example, “6.81% PB 2031” or GA SDL 2031

6.81% is the interest rate or coupon. This interest is paid out twice a year, and you will receive this in your bank account.

PB refers to the state issuing the bond. In this example, it’s Punjab.

2031 is that maturity year.

If a state government bond is issued for the first time, you will see a symbol like “GA SDL2033.” The yield is unknown when a state government bond is issued for the first time. RBI conducts an auction to discover the yield, and once it’s discovered, the bond will then be allotted to you at that yield. The interest rate and yield will be the same for a new bond. So, in the case of a new bond:

GA is the state (Gujarat) that is issuing the bond.

SDL is short for state development loan.

2031 is the maturity year.

Sovereign gold bonds (SGBs)

 

If you want to diversify your portfolio with gold, sovereign gold bonds are one of the best options. SGBs are issued by the RBI on behalf of the government of India.

Advantages of gold bonds:

  1. Issued and guaranteed by the government of India. 
  2. 2.5% interest per year over and above gold’s market returns. 
  3. All gold bonds have a maturity of 8 years, with the option of premature redemption after 5 years. Gold bonds are also listed on the stock exchanges, and you can exit them anytime. 
  4. No expenses or brokerage on investments through primary issues. There’s no brokerage on SGBs bought in the secondary market, but exchange and SEBI charges will be applicable.  
  5. No capital gains tax on bonds purchased during issue and held until maturity. Interest is taxed at your slab rate.
  6. If bonds are sold within 3 years, STCG will be applicable, and above 3 years, LTCG will apply. 
  7. Here’s a comparison of SGBs vs. physical gold, digital gold, and gold funds.

Note: It’s unclear if bonds purchased in the secondary market and held for more than 3 years are eligible for capital gains exemption. We are trying to get clarity on this.

Government bonds order window timings 

Security Day Time
Treasury bills (T-bills) Monday to Tuesday 6 PM on Tuesday.
State development loans (SDLs) Opens and closes on Monday 6 PM on Monday.
GoI dates bonds (G-Secs) Tuesday to Thursday 8 PM on Thursday.

Note: The dates may change due to trading holidays.

Learn more about government bonds on Varsity. You can keep track of all upcoming issues of government bonds and sovereign gold bonds on TradingQnA:

Issuance calendar for G-Secs.

Issuance calendar for T-Bills.

Issuance calendar for SGBs.

Issuance calendar for SDLs.

Basics of debt investing

How to invest in government bonds and sovereign gold bonds?

To invest in government bonds or SGBs on the Kite app, follow these steps:

  1. Tap on Bids.
  2. Tap on Govt. Securities.
  3. Tap on the security you want to invest in and then on Place bid.
  4. Enter the amount or use the “+” and “-” buttons above the keyboard to adjust the amount
  5. Swipe to place the bid

To invest in government bonds or SGBs on Kite web, follow these steps:

  1. Login to kite.zerodha.com.
  2. Click on Bids.
  3. Click on Govt. securities.
  4. Click on Place bid.
  5. Enter the amount.
  6. Click on Place bid.
India's largest broker trusted by 1.3+ crore investors.

Post a comment




182 comments
  1. Utkarsh Maheshwari says:

    When will sgb be credited in demat account as the settlement date was friday i.e. 23/02/2024.
    It is not showing under my holdings.

    • Shruthi says:

      Hi Utkarsh, the allotment dates are tentative and can change. Generally, it takes 10–15 days from the issue closure date for the SGBs to be credited to your demat account. You will get an email from CDSL once the SGBs are credited.

  2. Karan says:

    Hi, have received this message of Zerodha account being debited shortly for SGB. Can anyone clearly specify it would be from the Equity fund account right?

  3. Jayaseelan says:

    Will I get 2.5 interest if I buy SGB from Zerodha?

  4. Ram says:

    After making Bid in Kite, what is the process? Do I have to credit my kite wallet with the required amount?

    • Shruthi says:

      Hi Ram, funds will be debited from the Zerodha account on the last day of the order collection window. Please ensure to keep sufficient funds in your trading account. More here.

  5. Bijendar says:

    If someone being option seller wish to make investment among these bonds, which type of bonds qualifies for security Pledge for margin for Option Trading.

    • Shubham says:

      Hi Bijendar, G-Secs and T-Bills with maturity of 365 days can be pledged for collateral margin. You can check the list of all the approved securities here.

  6. Swapnil says:

    Can you please confirm if I have to keep 61.5k rps in Zerodha in order to place the bid. If the bid is placed and approved, but if I don’t want to buy the bonds then in that case how it works?

  7. Akash says:

    Where to check/modify the bid placed for sgb

  8. Reshma Jain says:

    I have placed bid for the SGB.

    The funds have to be kept in the equity account or commodity account?

  9. Uttam Kumar says:

    I have placed bid. When am I required to pay. Will payment be made through my trading account or from my saving account

  10. Amit Patel says:

    HI,

    I have placed bid for the SGB. However I was not asked to keep fund in the account.

    I want to know below..

    1) Will my Bid get rejected as there is no fund in acocunt?
    2) Will I be send any notification to add funds once allocation is made or BID goes through?
    3) OR anything else..

    I dont want to miss the opportunity to invest in this..

    appreciate your guidance

  11. Mamata says:

    While placing bid for SGB, from where the amount will be debited? Trading account or linked bank account?

    • Shruthi says:

      Hi Mamata, funds are debited from the available cash in your Zerodha account on the last day of the issue. Credit from stocks sold on the closing day of the issue will not be considered towards the purchase of the ETFs.

  12. Sushil Goel says:

    I purchased SBG last year, and we are supposed to get 2.5% yearly. where will the amount will be credited in my saving account or zerodha account and how can I verify it?

    • Shruthi says:

      Hi Sushil, the interest is paid once every six months to your registered bank account (bank account mapped to demat account. Could you check your bank statement for the SGB credit, it would be a NEFT transfer from Central Depository.

  13. Chirag says:

    If I place the bids for SGB, when and from where tge amoynt will be debited?

    From zerodha funds? Do I need to maintain the sufficient balance?

    • Shruthi says:

      Hi Chirag, funds are debited from the available cash in your Zerodha account on the last day of the issue.Credit from stocks sold on the closing day of the issue will not be considered towards the purchase of the ETFs.

  14. Nagesh says:

    I have the same question
    “I have placed the bid for SGB and it even showed as “Placed” however later i realised that there wan no enough funds in my account, how is it possible to place a bid if there is no enough balance in the account, please clarify?”
    And when the money will be ducted so that we have sufficient funds.

    • Shruthi says:

      Hi Nagesh, bids will be placed since funds are debited from the trading account only on the last day of the issue for Sovereign Gold Bonds (SGB) orders. The order is rejected if sufficient funds are not available. This has been explained here.

      • Mahesh Nair says:

        Hi, Funds need to be added under Equity or Commodity, for Sovereign Gold Bonds?

        • MS says:

          Hi there,

          Please advise if the funds for Sovereign Gold Bonds need to be added to Equity, and if there is an additional approval that has to be provided before the funds can be used to complete the purchase?

          • Shruthi says:

            Hi, funds are debited from the available cash in your Zerodha account on the last day of the issue.Credit from stocks sold on the closing day of the issue will not be considered towards the purchase of the ETFs. You can add funds to your equity segment.

        • Shruthi says:

          Hi Mahesh, under equity.

  15. SGB Order Placement says:

    I have placed the bid for SGB and it even showed as “Placed” however later i realised that there wan no enough funds in my account, how is it possible to place a bid if there is no enough balance in the account, please clarify?

  16. Vivek says:

    how do I pay for the bid i place for the gold bonds? Will it be deducted from my balance or would that be an UPI payment (approval request sent to me)?

  17. Pramesh says:

    What are the tax rate

  18. Uma says:

    What are the tax rates for g sec, sdl, and t bills

  19. Nikki says:

    I Really don’t know how to invest in these please guide me..

  20. BALARAM MEENA says:

    Sir. Meri I’d par KRA KI problem mere se solve nahi ho rahi hai
    Es problem ka aap hi sudar kare
    DHANYAD

  21. K R Balakrishnan says:

    What about “RBI Floating Rate savings bond, 2020”? Currently this can be purchased thru RBIDirect portal. Can this be purchased thru Zerodha?

  22. Shrey gupta says:

    Good app tqq u so much

  23. SANJAY SOLANKI says:

    Ok

  24. Chandresh says:

    How I can grow

  25. SUJALJAIN says:

    How profit is taxed

  26. Xyz says:

    How profit is taxed

  27. Vishal says:

    Does everyone who bids gets allotted the bonds?? Or if there’s a hierarchy, what is it based on?? Just luck or the amount invested…

    • Shruthi says:

      Hi Vishal, securities are issued for limited amounts, so there is no guarantee of allotment if the number of bids received is higher than the issue size. However, if the allotment is not received, attempts can be made at the next auction. RBI carries out multiple issues a month.

  28. Avinash Khatri says:

    Why can we edit the bud price for the t-Bills?

    If i want to buy at a discounted price only

  29. Sharmila says:

    How to inverse. Demo please

  30. suhas choughule says:

    ok

  31. Bartholomeo Topno says:

    How to invest in government bonds.

  32. Rajesh says:

    Hi try account UPI I’d fail
    Bank which

  33. Mukesh says:

    🙏👍

  34. Poovarasan says:

    Not understand

  35. Prakash says:

    👍🙏

  36. Mohan dev says:

    All the best

  37. Ansar ali says:

    Hi Jayesh, liquidity is an issue only if you wish to sell the SGBs in the secondary market. If you hold till maturity, the liquidity doesn’t matter and the amount will be directly credited to your primary bank account.

  38. Shyam Sundar R says:

    Hi if I buy SGB from secondary market and hold till its maturity will it be taxable.
    Suppose I buy SGB of Dec’28 maturity in Dec 23 and hold till Dec’28 is it taxable

  39. Jayesh says:

    What if there is no liquidity to sell off the SGB bond, will I be impacted?
    Or would it be auto credited directly onto my account at the time of
    Maturity? Please clarify both scenarios!

    • Shubham says:

      Hi Jayesh, liquidity is an issue only if you wish to sell the SGBs in the secondary market. If you hold till maturity, the liquidity doesn’t matter and the amount will be directly credited to your primary bank account.

  40. Rajendra says:

    Hi sir
    I purchased SGB units of series SGBSEP31II-GB. They are appearing in console. I want to pledge them for margin. But these bonds are not there in the approved list of securities along with other SGBS. What could be the reason? Will they be added in future? How do I know if they are added to approved list?

    • Shubham says:

      Hi Rajendra, the list of securities available for pledging is decided by the Clearing Corporation (CC). You will be able to pledge the newly issued SGB when it’s approved by the CC. You can check the list of all the approved securities here.

  41. Pankaj says:

    I purchased 26 units of SGB on Friday 13 Oct (yesterday) from Secondary market but on today 14 Oct these units are not visible in my holdings. When I can see these units in my holding?

  42. Shubham says:

    I have also bought SGB Series September. I received a email on 28th Sept from CDSL that units are credited to your account. Can you tell where to see on console? I am not able to find units allotment anywhere.

    • Shubham says:

      Hi Shubham, the newly issued tranche of SGB is yet to be listed on the exchanges. Once listed, it will show in your holdings on Kite. Until then you can check it on Console holdings under ISIN: IN0020230093.

  43. Bharath says:

    How can I set up a notification when a sovereign gold bond becomes available?
    Most of the times I am pretty late when the bond becomes available.

  44. Akshay Prabhu says:

    Hi i hHi i have bought SGB through zerodha on SEP 15 ,2023 ,Now its been more that 15 days and i got the mail from CDSL and investment is started to appear on portfolio but it is showing only qty but not showing invested amount and price variation or P&L .Also it does not appear inside holdings of kite app or coin app.What should i do?

    • Shruthi says:

      Hi Akshay, the SGBs are credited to your account. Once listed on the secondary market, you will be able to see them under Kite holdings and the price details will be update automatically. Until then, you should be able to see the units only on http://console.zerodha.com. The listing date is currently not known, it usually takes 10-15 days from the date of issuance for the SGB’s to list on Exchanges.

      • Shubham says:

        I have also bought SGB Series September. I received a email on 28th Sept from CDSL that units are credited to your account. Can you tell where to see on console? I am not able to find units allotment anywhere.

  45. Rajesh Ahuja says:

    I have purchased SGB through icici bank account with Zharodha demate I’d. The money is deducted on 20 Sept. Where will my show in my portfolio.

    • Shubham says:

      Hi Rajesh, the SGB will show in your holdings on Kite once it is listed on the exchanges. The listing date is not know yet.

  46. Prasanna says:

    Hi,
    I’ve purchased the sovereign gold bond thru Zerodha. Its been processed and money got debited from zerodha account. But I could not see the processed bonds. Suggest me how Can I find it. Thanks

    • Shruthi says:

      HI Prasanna, the allotment dates are tentative and can change. Generally it takes 10–15 days from the issue closure date for SGBs to get credited to your demat account. You will, however, get an email from CDSL once the SGBs are credited

  47. SB shinde says:

    I have applied for SGB II . The status is showing “PROCESSED”.
    Then how do I check in my dmat account.

    • Shruthi says:

      Hi, the allotment dates are tentative and can change. Generally it takes 10–15 days from the issue closure date for SGBs to get credited to your demat account. You will, however, get an email from CDSL once the SGBs are credited

  48. Piyush Kumar Gautam says:

    I had invested in SGB and DP ID & Client ID was given of my Zerodha, purchase was done on 11-09-2023 but I am not able to check in zerodha about allotment of SGB. Zerodha statement also not showing details of holding SGB. How i can check and track my allotment and where in Zerodha ID.

    • Shruthi says:

      HI Piyush, the allotment dates are tentative and can change. Generally it takes 10–15 days from the issue closure date for SGBs to get credited to your demat account. You will, however, get an email from CDSL once the SGBs are credited

  49. nikhil says:

    activat nhi ho rha ha

  50. Maverick says:

    Has interest been credited for SGBs, this year(2023) I’m unable to see it in bank account, usually by june -july I used to get it.

    • Shubham says:

      Hi, if you are not getting interest payment for SGBs, you can write to CDSL & NSDL who act as RTAs. You can write to CDSL from here and NSDL here.

      The interest is paid out every 6 months from the date of issue of the bond. The date of issue can be found here.

  51. Rinkesh says:

    Can NRIs invest in Sovereign Gold Bonds? I have NRO non PIS account with zerodha.

  52. Ankit says:

    What action needs to be taken after placing the bid? How will I make the payment? Will it be deducted from the funds or will I have an option to make the payment through UPI?

  53. B NARSIMHA says:

    Iam starting investment ment today

  54. Anishaben Gandhi says:

    I hv purchased 10 gm sgb today. Still want to purchase more gms with new order. What to do? Pl suggest.

  55. arun says:

    For SGB order throught zerodha.
    Money will be deducted from funds in zerodha, or from my bank account?

  56. Ravi says:

    I have already placed an order in coin site for Sep SGB. Do in need to cancel the order in coin app and place the same in kite app or order placed o. Cpi. Is enough ?

  57. Hemant says:

    SGB Bid is placed, how the amount will be debited from my account or i need to keep the amount in Zerodha funds within my account?

  58. Hemlata says:

    I have placed SGB bid first than added amount to kite account.
    Will that be a issue for payment for the bid?

  59. Rijesh says:

    How will be the payment for SGB bid? Will it be debited from Fund balance in zerodha or directly from Bank account?

  60. Rangarajan says:

    I want to invest in SGB Sept 23 issue. But I find the process of applying in Kite very very cumbersome. Still unable to make out how to do. Why can’t you have a single app for all kinds of investments

  61. Ashish says:

    Hi, Is there any charges on SGB if we purchase on new bond and sell during maturity? As Banks are also offering the sale of SGB. Please explain the difference between Bank vs Zerodha buying,

  62. Amogh says:

    Hello,
    I have placed big for SGB today and have transferred the bid amount to the zerodha demat account. How do I get know if the bid is placed and amount is debited.

    • Shubham says:

      Hi Amogh, the order will be processed on the issue closing date, you can check this on the order window. Once the order is processed you will get an email on the registered email ID.

  63. harihar says:

    Hi
    Recently I saw a bond 1018GS2026 , It traded at 130/-. My doubt is…as the GSec earns only 10.18, even if accumulated interest is also worked out…why it sells at so high a price of 130 ?…Can you enlighten me on the logic behind this ?

  64. Rahul says:

    Hi , I have placed the bid for SGB, but there is no confirmation email and I can’t check the status on Kite mobile , can the system be updated to send a confirmation of bid placed or make the bid available to see in Kite mobile ? Thanks

  65. Sreekanth says:

    Hi team
    how do I buy T-bills through zerodha platform? please give me he steps or link
    thank you
    sree

  66. Venkat says:

    is it possible to buy RBI Floating rates bonds too through Zerodha? if so could you please share the link.

  67. Nikita says:

    Hi, I have placed bid for SGB. For executing the order on last day, total available margin (Cash +
    Collateral) will be considered. Right? Means both cash plus non cash both will be considered?

  68. Anirudh says:

    Will I be able to see the amount of coupon that I will receive every year?…is there a table or something like that.

  69. senicca says:

    how to invest in SGB .

  70. SUNIL SAINI says:

    If price of gold had fallen by maturity date, will I incur loss on redemption (excluding interest rate payment)?

  71. Rajesh G says:

    Hi,
    What is the amount to be filled in SGB. For example it shows 5873 today?. Is that for 1 unit. If i need to buy say 2 units then should i type 11746/- . Same way for govt securities. also i saw it auto corrects the amount even if i type amount in excess . say i type 12000/- it corrects to 11746/-. Please change the GUI like normal buy and sell instead , by typing the qty but in multiples.
    Thanks

    • Rahul says:

      The rate is fixed , you can only change the quantity and amount will be auto calculated!

    • Shubham says:

      Hi Rajesh, the minimum investment amount is fixed and you need to place bids in multiples of this. You can enter your desired amount and it’ll automatically get rounded off to the nearest quantity.

      Also, we’ll note down your feedback and check if we can provide an option to enter the quantity.

  72. M.Senthilkumar says:

    Is it possible to buy via kite app

    • Shubham says:

      Hi Senthilkumar, government bonds and sovereign gold bonds are currently available on Kite web and will soon be available on Kite mobile.

  73. Ashutosh says:

    The required money should be in the Demat account or Bank account for SGB and for G Secs ?

  74. RSGupta says:

    I am not getting 2.5%interest on SGB in my bank account.What should be done and where to check

  75. Suresh Upadhyay says:

    I have placed the bid in SGB. When this bid amount will be deducted ? Amount will be deducted from directly from bank account or fund should be available on Zerodha ?

  76. Dillip says:

    Please avail it in kite app

  77. Mahesh Raja says:

    Can you clarify on how much time it will take to pledge G Sec or SGB bought during issue.

    • Shubham says:

      Hi Mahesh, G-Secs and SGBs can be pledged once they are credited to your demat account and listed on the exchanges. G-Secs are alloted in T+2 working days after the auction on Friday. For SGBs it can take 15 days from the issue closure date.

  78. Abhay says:

    When will CORPORATE BONDS be available on zerodha? Since a long time on coin it says coming soon

  79. Ravi says:

    What are the charges that are incurred if we buy the treasury bills or Gsec from secondary market ?

  80. Ritesh says:

    After placing bid for SGB in primary market .Do I need to keep funds ready in kite?
    Is it true that the SGB order will be cancelled automatically if I don’t have the funds available in kite app on the last date?

    • Shubham says:

      Hi Ritesh, you will have to maintain sufficient funds in your trading account on issue closing day else the order will be rejected.

      • Kumari Priyamwada says:

        I’ve placed order for SGB in September issue but have kept the amount required in the bank account. Do I need to shift it to Zerodha kite for successfully bidding.

        • Shubham says:

          Hi Kumari, you need to transfer the amount to your Zerodha account. If sufficient funds aren’t there in your account on the issue closing date (September 15, 2023), the order will be rejected.

      • Anupama says:

        Hi should we add funds to ‘equity’ or ‘commodity’?

  81. sanket says:

    so g-secs will be stopped on coin ? or will continue there also?

  82. sanket says:

    > 5. No capital gains on bonds purchased during issue and held until maturity. Interest is taxed at your slab rate.

    you mean “no capital gain tax” right? Cause, as per my understanding, capital gain/loss will be there depending on price at what you purchased SGB 8 years ago and price at what you are selling now.

  83. mahesh says:

    It will be better if you can share a video showing all the procedure.

  84. JUDHISTHIR HALDER says:

    NO

  85. Yogesh says:

    Yes I’m thinking about it.

  86. subs says:

    1 why sdl are not allowed for collateral ?
    2. why some g secs in allowed list of clearing corp are not in your list ?
    3. when list of gsec issue dates after sept 2023 will be available ?

  87. Ashutosh says:

    When will we receive the Interest? How do we get to know which bond has what plan of payouts?

  88. Nishant says:

    What is the meaning of bid here and how it effects. Meaning the indicative yield shows 7.36% and the price is 105.35. Does it means the effective return value is 100 and the 5.35 is the premium of the bid and on maturity we get the price 107.36. Please clarify and elaborate. Also the maturity date is missing in the government bonds please indicate the date of maturity also on the portal.

    • Shubham says:

      Hi Nishant, 7.18% is the interest rate or coupon. This interest is paid out twice a year, and you will receive this in your bank account. The interest is paid on the face value, in this case, Rs. 100. 105.35 is the price of the bond, it is the estimated weighted average rate of all allotments to competitive bidders + accrued interest + markup value (difference between the lowest and highest bid). More here.

      The maturity date of the bond is shown on the order window itself along with indicative yield and price.

  89. ravi says:

    if i buy through zaro. where i can see my investements/

  90. Sanjeev says:

    It will be better if you can share a video showing all the procedure.

  91. Shankar says:

    Please give us the link to proceed further. And also expecting the answers to the questions asked, like minimum amount and minimum holding time and also how to sell?

    • Shubham says:

      Hi Shankar, you can invest in government bonds here. The minimum amount required in mentioned on the order window itself. There is no lock-in period. The G-Secs and SGBs are listed on the exchange. So you can sell them on the exchange just like stocks. However, on the exchange the liquidity is low. So, ideally you should invest if you intend to hold these bonds till maturity.

      For SGBs, there is option of premature redemption after 5 years. You can check the process for this here

  92. Ravindra says:

    If I buy through Zerodha, where can I see my investments in Govt bonds in Zerodha?

    • neha says:

      what will happen to SGB principal at MATURITY will it be deposited back in my zerodha account or i will be issued physical gold ??

      • Shubham says:

        Hi Neha, upon maturity the amount will be credited directly to your bank account. The redemption price is determined by the simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment. More here.

      • Brajesh says:

        At the time of maturity ,the gold rate available at that time will be directly credited to your bank account directly.
        Say you purchase @5000 & at the time of maturity you get @7000(say gold rate at that time)

    • Shubham says:

      Hi Ravindra, once the bonds are credited to your demat account and listed on the exchnages, these will show in your holdings on Kite and Console.

  93. Ghanshyam says:

    How to sell, what are the limits of minimum hold or there is lock in time?

    • Shubham says:

      Hi Ghanshyam, the G-Secs and SGBs are listed on the exchange. So you can sell them on the exchange just like stocks. However, on the exchange the liquidity is low. So, ideally you should invest if you intend to hold these bonds till maturity.

      For SGBs, there is option of premature redemption after 5 years. You can check the process for this here.