I have a rather basic query on SGBs. How does the price of a recently listed SGB move if it cannot be sold for a period of 5 years since the date of issue? Consider the most recently listed SGB for instance.
Today’s (26th February 2024) trading volume is 2,494 shares. How do these transactions take place? And between whom?
It is tradable I. Secondary market
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You are not encashing the bond. You are selling it to another person. He can encash it after 5 year period or hold it to maturity. Or sell it to someone else
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As rightly pointed out by others, this statement is incorrect.
These are listed instrument and can be sold and bought in market.
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They can be sold to others, they cannot be redeemed (“sold” back to the issuer, which is RBI) before 5 years.
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Many thanks for enlightening me @ZeroIndian . Is the taxation the same if the bond is sold to another person or encashed with the RBI?
Many thanks for enlightening me @tallerballer. Is the taxation the same if the bond is sold to another person or encashed with the RBI?
I am not sure, but this thread could help you