Sovereign Gold Bond

#22
Has anyone purchased Sovereign gold bonds in the Secondary Bond Market?

I tried to through ICICIDirect. It shows me the quote & allow me to place on order but then gives an error message "Buy in this scrip is currently not allowed".
 
#23
Has anyone purchased Sovereign gold bonds in the Secondary Bond Market?

I tried to through ICICIDirect. It shows me the quote & allow me to place on order but then gives an error message "Buy in this scrip is currently not allowed".
I bought it in Sharekhan and also traded in RKSV (intraday and selling, but never net buy quantity).

The problem with these bonds are they cannot be transferred from NSDL to CDSL or vice versa. This mean if you have NSDL account and the seller has CDSL account, the broker can not transfer the bonds in your NSDL account. In Sharekhan I have made an arrangement that if the delivery is received in CSDL account then I ask them to transfer it to my RKSV account (RKSV account is CDSL)
 
#24
The problem with these bonds are they cannot be transferred from NSDL to CDSL or vice versa. This mean if you have NSDL account and the seller has CDSL account, the broker can not transfer the bonds in your NSDL account. In Sharekhan I have made an arrangement that if the delivery is received in CSDL account then I ask them to transfer it to my RKSV account(RKSV account is CDSL)

I think ICICI doesn't allow you buy at all in the secondary market. That's what they told me when I called them. I was wondering if this ok as per the SEBI guidelines. I mean - if it's selling on NSE & BSE, how can ICICI decide that they are not going allow it to be bought.

That aside, when you are buying it on your Sharekhan account - how would you know whether the seller is on CDSL or NSDL? What happens if you have NSDL & the seller has CSDL. What happens to the bonds you purchased?
 
#25
I think ICICI doesn't allow you buy at all in the secondary market. That's what they told me when I called them. I was wondering if this ok as per the SEBI guidelines. I mean - if it's selling on NSE & BSE, how can ICICI decide that they are not going allow it to be bought.

That aside, when you are buying it on your Sharekhan account - how would you know whether the seller is on CDSL or NSDL? What happens if you have NSDL & the seller has CSDL. What happens to the bonds you purchased?
When I buy the bonds I do not know whether the seller has NSDL or CDSL account. It is on T+2 day when the broker receives the bonds either in NSDL account or CDSL account. If the bonds are received in CDSL account there is no way for broker to credit it in your NSDL account. That may be the reason ICICI direct is not allowing trading as they may not want that extra headache.

In case of Sharekhan, if the delivery is received in CDSL, they keep the bonds with themselves without any intimation to you. If you do not call Sharekhan probably you have donated the money to Sharekhan. If you call them then they allow you to transfer the bonds to another broker account or you can sell it by placing offline order.
 
#27
I bought 50 quantity of SGBAUG24 on 26th September from Sharekhan. The bonds are not credited to my account so far. I raised a complaint with Sharekhan. Instead of crediting 50 bonds they debited 50 bonds from my demat. So now they need to transfer back 100 bonds but they are just not responding.
 
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Alchemist

Administrator
Staff member
#28
I bought 50 quantity of SGBAUG24 on 26th September from Sharekhan. The bonds are not credited to my account so far. I raised a complaint with Sharekhan. Instead of crediting 50 bonds they debited 50 bonds from my demat. So now they need to transfer back 100 bonds but they are just not responding.
Sharekhan is crap broking firm.

Just lodge a complaint with the exchange.

https://www.nseindia.com/invest/content/complaints_exchange.htm

https://bsecrs.bseindia.com/ecomplaint/frmInvestorHome.aspx
 

Alchemist

Administrator
Staff member
#30
How are Zerodha & Upstox?
Zerodha has server and connectivity issues from time to time.

I have been using Upstox for some time now and have no complaints. I use Upstox for delivery and derivative trades.

I mostly day trade and use Kotak Securities for day trading as there is no brokerage for intraday trades.
 
#31
Thanks for suggestion. I will log the complaint with exchange. Yes, Sharekhan services are going down day by day.

Their software always was not great and had multiple errors. But earlier Sharekhan used to be genuine and even compensate you for losses.

But in recent 2-3 years there are multiple system errors that caused me some losses but they did not reimburse even penny for that.

And now the problem is they do not even respond to your queries. Even in simple cases as this where they already have bonds and can credit it to my account, but they are not responding. If I call them the call centre people do not have much information and just says concerned person is looking into it. And they do nor transfer the call to concerned person or the concerned person does not even care to call me up.
 
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#33
Zerodha has server and connectivity issues from time to time.

I have been using Upstox for some time now and have no complaints. I use Upstox for delivery and derivative trades.

I mostly day trade and use Kotak Securities for day trading as there is no brokerage for intraday trades.
Do you have any suggestions for NCD trading? I have Sharekhan and Upstox account.

My requirement is
- Low brokerage
- Reliable Broker
- Give me some margin against my holdings in NCDs and allow me to trade without tranfering the money in advance. I am ok to transfer the money of my buy order is executed.

While Sharekhan is giving me very low brokerage 0.07% for delivery and 0.007% for intraday. Intraday brokerage is even less than Upstox which is charging 0.01%. They have AMC charges of Rs 400 + GST and for sell delivery transaction minimum brokerage is 21. They do not have separate charges for demat.

In Upstox, I get free delivery trades and 0.01% for intraday trading. They charge me 5.5 Rs as demat charges for each sell delivery transaction.

While I definitely think Upstox has better system compared to Sharekhan, but they do not give me any margin. As the liquidity of NCDs is less, I may want to place order worth Rs 10 lakh every day, but there may not be any executed order or may be less than 1 lakh in most cases. I can transfer 10 lakh if all my orders are executed, which is unlikely but if none of the orders are executed I do not want to transfer anything.

I had Kotak Securities account earlier where I negotiated to 0.15% for delivery and 0.015% for intraday. But then they were charging 0.02% for taxes each side which was approx 4 times higher than Sharekhan/ Upstox making my intraday brokerages 0.035%. For delivery side they used to charge Rs 23 extra for each sell transaction in addition to brokerage. Although these rates were better than what they usually give to public, but still I did not find it attractive.

Do you have any other suggestions?
 
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#34
Hi rajivka, was your purchase of SGB through Upstox successful? Are you receiving the interest consistently?
 
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#35
Hi rajivka, was your purchase of SGB through Upstox successful? Are you receiving the interest consistently?
I never purchased SGB bonds through Upstox. I sold it multiple times or did intra day trading on Upstox but never purchased it directly from my Upstox account. Yes I am receiving my initerest regularly. However I see the interest on CSDL is sometimes delayed by 3-4 days.
 
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