Is there any difference between the recently launched platform provided by RBI as ‘RBI Retail Direct’ and the Government? Bonds offered on the “Zerodha Coin” platform ?
These bonds are not issued in demat format and are accessible NDSThe minimum size is Rs 5 cr on the standard market where most trades take place. However, there is an odd lot market with a minimum amount of Rs 10,000, accessible to retailers as well, but with little activity.
Personally, I think both RBI and SEBI should have worked together to increase their popularity on exchanges. This is just further fragmentation of the already illiquid G-Sec investment ecosystem.
@Bhuvan If i need to transfer gsecs from demat to rbi retail gilt account, how do i initiate a request on zerodha?
The process of transferring government securities (G-secs) from Zerodha to RBI retail direct accounts is explained in the article. How to transfer Government Securities (G-secs) or Sovereign Gold Bond Scheme (SGB) from Zerodha to RBI Retail Direct Account?
Yes, I got a reply after raising a ticket on zerodha. It looks like they added this link later because they only found demat or deposit-to-deposit transfers before. Thank you nonetheless.
Although I was hoping the process would be completely online and without unnecessary hassles.
Is the opposite possible? i.e. transfer gsec from RBI Retail Direct to a demat account (e.g. Zerodha)?
You’ll have to ask rbi retail support staff who are very responsive. But if like me you want to transfer gsecs to trade instead of holding to maturity, NSE liquidity is nds odd lot liquidity No better or worse. But with rbi gilt, unlike demat, you don’t have to worry about broker fraud or broker default or using gsec as collateral. Both have gsec (same series).
Gsec transfer from RBI direct account to Demat account is not allowed.
I’ve done some digging. I feel a little confused. Dematerialization of GSec is actually allowed. If not, what is the point of GSec listed in NSE and BSE?
This is a snapshot from the CDSL website.
sauce: G seconds | CDSL
It clearly shows that you can transfer from RDG to Demat.
I’ll ask someone at zerodha to explain the process in detail.
Retail Direct Gilt (RDG) accounts are not listed in the link you shared. Only the SGL, which is different from the RDG, will be discussed.
The link you provided is dematerialization G-secs in constant operation.of rematerialization According to the CDSL, G-secs will be launched in about two months.
Our team contacted RBI about this several months ago.It is currently explained that only the transfer of securities from the demat account to the RDG is possible hereThe RBI has not yet started setting up the process of transferring securities from the RDG to the demat account and this will take time.
is this what you were asking?
Thanks for replying to my question @Tharun_Iyer_M. appreciate.
I’m still confused about certain things (all this nomenclature is really confusing)
Doesn’t that mean gsec purchased from RBI’s Retail Direct platform (and held in RDG) is stored in SGL’s RBI? shape?
If possible you can also refer to 9 pages of this document NSDL (maybe read the whole doc)
(I believe CDSL follows a similar procedure)
it talks about “Investors may have balances with other entities in bookkeeping in which they have invested.
You may wish to transfer money to your NSDL Savings Account.This process also
Dematerialization facility. ”
SGL means that the holding is kept as a bookkeeper at RBI, right?
Edit later – I also found this document on the CDSL website.
@Tharun_Iyer_M! Get back to me on this, right?
I am strongly considering storing most of my cash margin in GSEC. You can actually use some guidance here.
ok i’m looking into this. We will restore it as soon as possible.
Just a quick update that @Pawan has been in contact with the vault and will update here when we get any information on this.
Let’s start from the beginning.
The screenshots and circulars you refer to explain how to transfer SGB/GSec/SDL from one Demat a/c to another Demat a/c interdepository.
For more information, see: this Link.
Now go to your RDG-RBI Retail Direct Gilt Account.
Currently, RBI only allows remittances from SGB/GSec/SDL investor Demat A/c to his RDG account.
For more information, see: this Link.
*Note: Transferring SGB/GSec/SDL from RDG to Demat A/c is not supported yet. Once RBI launches this feature, you will be able to get information about the RDG platform. I’ll also try to explain this option once it’s published.
Any update from RBI on transfer of GSec bonds from RBI retail to demat?