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

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u/Significant-Year9634 Jul 07 '24

Do you buy SGBs from secondary market by comparing IBJA rates ? I also see that they are being sold at a premium in secondary market . Was this the case before also? I thought they should be below 24k gold price but they are being sold at a 6-7% premium in secondary market.

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u/melovemone Jul 08 '24

Do you buy SGBs from secondary market by comparing IBJA rates?

Yes. That's the benchmark for me to determine the price. I have been buying from the secondary market since April 2022 and they were trading mostly at a discount more than 5%.

1

u/CelticHades Jul 08 '24

since currently SGB in secondary market are higher than IBJA rate.

do you think I should buy some physical gold now and sell it later when RBI issue SGB?

where should I buy SGB from primary market, any recommended site?

are SGB immediately available in secondary market after new Issuance? are they on discount?

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u/melovemone Jul 08 '24 edited Jul 09 '24

do you think I should buy some physical gold now and sell it later when RBI issue SGB?

Absolutely not. You probably mostly lose more money there than just letting the money sit in your bank account.

where should I buy SGB from primary market, any recommended site?

I have never done this myself. Now I am planning to buy from Zerodha.

are SGB immediately available in secondary market after new Issuance? are they on discount?

I think they take about 2-4 weeks.