[Fx14]

Originally Posted by EV NXT

I have bought these floating rate GOI bonds by making a payment through an ICICI bank demat account.

You may find this useful :
https://m.rbi.org.in/scripts/FS_FAQs.aspx?Id=70&fn=2757

Refer to point 12 :
What does one mean by BLA?

A BLA or Bond Ledger Account means an account with RBI or an agency bank in which the Government securities are held in a dematerialized form to the credit of the holder. The investor in this case receives a Certificate of Holding or Certificate of Investment from RBI/Agency Banks.

[SmartCat]

Originally Posted by Simhi

1) Does "managing interest rate" come into picture when holding the bonds till maturity?

It does not if you treat these bonds like Fixed Deposits.

However, you can generate alpha (extra returns) with an actively managed bond portfolio. That's done by moving into long term bonds just before interest rates fall and moving into short term treasuries when interest rates rise.

Using this strategy, some gilt funds have generated 10% CAGR returns over a long period of time. Eg:
https://www.valueresearchonline.com/...tial-gilt-fund

As per the FAQ, we can even invest in state government securities
Source: https://www.rbiretaildirect.org.in/f...il-direct.html

[EV NXT]

Originally Posted by SmartCat

No TDS, but you pay based on your tax bracket.

I have had TDS deducted from my GOI bonds. Would that be an error? ICICI seems to have a bit of confusion in their TDS area.

[kavensri]

Hi SmartCat, I need help from you.

I had brought this bond, https://www.bondsindia.com/bond-dire...l/IN0020200252, in 2020 for Rs. 10000.
I had zero knowledge on these things and brought this based on some reference.
Now, I want to sell these bonds. Do you know how I can sell these bonds?
They are reflected in my Demat account (ShareKhan) under NSDL Holdings. But I do not see any options to sell from my demat amount. Can I sell it directly from NSDL? If so, what is the procedure?

[SmartCat]

Originally Posted by kavensri

Now, I want to sell these bonds. Do you know how I can sell these bonds? They are reflected in my Demat account (Sharekhan) under NSDL Holdings. But I do not see any options to sell from my demat amount. Can I sell it directly from NSDL? If so, what is the procedure?

Before Zerodha allowed onlie sell functionality for bonds, investors could exit a bond by contacting customer service. Perhaps you need to contact BondsIndia customer service to sell these bonds?

[SteeringWheel]

Originally Posted by kavensri

If so, what is the procedure?

Please check this BondsIndia link, it mentions about transferring and selling of bonds.

https://www.bondsindia.com/blog/Tran...g-Indian-Bonds

[kavensri]

Originally Posted by SteeringWheel

Please check this BondsIndia link, it mentions about transferring and selling of bonds.

I did create a login at RBI Direct App, as suggested by BondsIndia link.
And this is what I am supposed to do to transfer the bonds from Demat to RBI Direct. If I understand correctly, I need to contact my Demat Account service provider as a next step, am I right?

[vaibhav_a_a]

Originally Posted by kavensri

Now, I want to sell these bonds. Do you know how I can sell these bonds?
under NSDL Holdings.

You have 3 options to sell this bond as this a GoI bond so liquidity is not an issue.

Option 1 - easiest and least cost effective - sell via any one of the dealer platforms. There are many of which I give a few below -

Indiabonds
Thefixedincome
GoldenPi
Aspero
TapInvest
Bondskart (JM Financial)

Of these, the first two would give you a decent price / value combination. Remember they will give you a quote which is valid on that date only and would guide you through the process. Your only decision point is either you take it or leave it.

Option 2 - You could sell it via an online broker without involving a human being. Zerodha and many others (Sharekhan, HDFC, ICICIdirect) all offer bond sale/purchase. Here you pay brokerage but prices are better than option 1. The issue is finding the specific bond in their search. I cannot find it in sharekhan, for example, though many other govt bonds are available. In Sharekhan you can try one thing, go to reports (on your desktop) and go to DPSR and see if it lists the bond in there along with other holdings. If it allows you to select the bond, do a sell on either BSE or NSE. It allows me to do this for my SGBs but I don't hold any GoI long term securities hence cannot say if this will work.

Option 3- most cost-effective but also the most hassle. You could register on RBI Retail Direct. This is RBI's own, zero-cost platform for retail users to buy government securities. Then, you'd have to register on NDS-OM (Negotiated Dealing System - Order Matching) platform. https://retail.ndsom.com/ From what I recall the latter will get activated within a day or two SLA. I actually recall calling their helpline to check (yes! a govt department that actually picks the phone). Here investors are continuously selling and buying and there is no brokerage and price is what the market is willing to pay on that day. Check if NSDL app allows you to transfer to RBI otherwise an offline DIS via sharekhan will be required, again, a lot of hassle there.

Given the value, I'd recommend option 1 for you as its not worth the headache. However, if you get into more sale purchase you have options.

hope this helps
Vaibhav

[kavensri]

Originally Posted by vaibhav_a_a

You have 3 options to sell this bond as this a GoI bond so liquidity is not an issue.

Oh wow, this definitely helps. And I would prefer going via option 1 for two reasons. One, the amount is not high (Rs. 10000) and two I don't mind losing some money for hassle free work.
And to answer your query related to ShareKhan, I do have SGB and these G-SEC bonds being listed under NSDL Holdings. But, only for the SGB, I can see 'Sell' option in the trade view. So, looks like, it is not available for G-SEC bonds?

[vaibhav_a_a]

Originally Posted by kavensri

I do have SGB and these G-SEC bonds being listed under NSDL Holdings. But, only for the SGB, I can see 'Sell' option in the trade view. So, looks like, it is not available for G-SEC bonds?

Well, I didn't invest directly in GSec via Sharekhan so cannot help there. Besides, I also don't sell anything, like ever. It's easier to let the instrument mature and reinvest the redemption proceeds is more my philosophy...

In general though, if you cannot see something on a listing / order screen via your broker platform then it's not available for sale/purchase is my understanding.

[SteeringWheel]

Originally Posted by kavensri

I did create a login at RBI Direct App, as suggested by bondsindia link.

I thought you bought the bonds on bondsindia platform and so posted the link as it mentions you can "Request for Quote" on the same platform. I don't have bond investment experience. I invested in T-Bills once for testing. Similar to your experience, I had it in Demat but there was no option to sell. Since it was only for an year I let it mature. Never invested again cos of lack of information.

From the screenshot, it looks like you'll have to transfer the bond from your current demat to RBI A/c(?).

If you have a Zerodha account, that may be one good option from what Vaibhav has listed as their brokerage is low.

Originally Posted by vaibhav_a_a

You have 3 options to sell this bond as this a GoI bond so liquidity is not an issue.


Vaibhav

For all these options, does the bond holder have to transfer the bond from current dp to these platforms?

[vaibhav_a_a]

Originally Posted by SteeringWheel

For all these options, does the bond holder have to transfer the bond from current dp t o these platforms?

The dealer should have you transfer to their dp afaik. Again as I said no personal experience selling anything on the debt side, just know the process.

[vaibhav_a_a]

Coincidentally got an email from RbI retail direct. Think they sent it as I've been inactive on that portal for 6 months now.. Thought of sharing as might be interesting reading on this thread

" RBI Retail Direct - Secondary Market Trading in Government Securities

Thank you for registering with the RBI Retail Direct Portal !!!

Now you have a ready access to safe and risk free investment world of Government Securities. You can invest in Primary issues of Government Securities as well as trade in Secondary Market.

The secondary market-trading portal can be accessed through RBI Retail Direct website https://www.rbiretaildirect.org.in

Retail investor can now:

Buy and Sell without any Trading/Settlement charges or brokerage; access common market liquidity.

Trade anonymously (Order matching) or give/receive quotes to big institutions (using Request for Quote module).

Access to the Best Buy and Sell prices quoted by other market participants.

Transfer funds using Net Banking and UPI for buying Securities.

Retail Direct offers Guaranteed Settlement of Trades through Clearing Corporation of India Ltd and your securities are safe housed electronically with Reserve Bank of India."

[vaibhav_a_a]

Originally Posted by SteeringWheel

For all these options, does the bond holder have to transfer the bond from current dp to these platforms?

Originally Posted by vaibhav_a_a

The dealer should have you transfer to their dp afaik. Again as I said no personal experience selling anything on the debt side, just know the process.

Apologies for flooding this thread but this was a worthwhile question so I spoke with the RM on one of these platforms and learnt below -

DIS is required if the current online broker doesn't allow open market selling of the bond. So it does look like some effort is required if this route is taken.

[4wheelsman]

Am a Fund Manager - Fixed Income/ Bond. and let me tell you none of this platforms are efficient or transparent. Happy to help/guide/discuss on bonds/debentures/ fixed income anytime.