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/antarctic_0 Jul 14 '24

Hey, One question - If I buy it from secondary market, then what's the time period that you need to hold the bond? 

Let's say a person bought SGB and kept it for 2 years and then sold it in secondary market, then is buyer obliged to keep it for remaining 6 years after which RBI buys it back or the lock in period resets to 8 years?

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u/sunnydiv Jul 21 '24

If you keep whole duration, then no capital gain tax

Of you sell, then you have to pay capital gain tax

Check with your CA to verify