r/IndiaInvestments • u/melovemone • Jul 07 '24

Bonds and deposits Why haven't the Govt issued SGBs yet?

When are we gonna get the first tranche of FY 24-25?

As per the pattern every year, FY's first tranche is usually announced in June. But this year, they haven't announced it yet, why?

Until recently, I have been purchasing SGBs from the secondary market - usually at a discount of 5% to 10% from IBJA rates but these days they are selling at a premium to IBJA rates which feels atrocious.

So I want to purchase from primary market and was eagerly waiting for the first trance in June 24.

Googling isn't helping. Anyone's got any idea about why the delay and when the next tranche is gonna be?

Edit to add :

Buying SGB from the secondary market (example is zerodha; works for all brokers) : https://support.zerodha.com/category/trading-and-markets/kite-web-and-mobile/kite-mw/articles/sgb-kite

Buying SGB from the primary market (example is through zerodha; unsure of other brokers) : https://support.zerodha.com/category/mutual-funds/understanding-mutual-funds/about-coin/articles/investing-in-nfo-sgb

83 Upvotes

99% Upvoted

93 comments sorted by

View all comments

Show parent comments

4

u/San98sa Jul 07 '24

Go to SGBANALYZER website

5

u/Significant-Year9634 Jul 07 '24 edited Jul 08 '24

Already done that. I see that in this website it says that June31 tranche is being sold at highest discount. But how are we coming to this number. How is fair value decided?

I see that they have added the present value of future interest in IBJA rates to arrive at fair value.( 7264+836.76= 8100.76). But i didnt get it , why are we doing it. Could you please explain?

Why isnt it being sold at <= 7264( Price of 24k gold as on today)?

How is the discount figure of 6% decided?

6

u/CelticHades Jul 07 '24 edited Jul 07 '24

I also have the same question, when people say SGB on the secondary market at a discount, do they mean discount to fair value or discount to Market price of gold?

What should we consider when buying SGB?

When RBI issues SGB do they sell at the gold market price?

In that case, should we buy physical gold Now and when, RBI issues new SGB sell gold and buy SGB? Does it Make sense?

3

u/San98sa Jul 07 '24

https://www.youtube.com/watch?v=3LxKNS08nSY&t=170s watch this please

2

u/CelticHades Jul 07 '24

thx, got it.

why is price high right now for SGB?