Latest Update: 21 April 2020

We have unblocked Sovereign Gold Bond Trading. You can trade in SGBs. The regulations have confirmed that the SGBs can be transferable from NSDL to CDSL or vice versa

Old Update:

Generally brokers have two depository accounts. One with NSDL and the other one with CDSL. Currently, we are registered with CDSL for maintaining client’s holdings.

As per the RBI and depository regulation, SGB units cannot be transferred from NSDL to CDSL or vice versa in any of the government securities.

Whenever you buy SGB, units would get credited either to our NSDL or to CDSL pool account from the exchange. In case the units received in CDSL, we transfer the units to your demat account with us. If the units are received in NSDL then the same cannot be transferred to your CDSL demat account as per the regulation mentioned above. In such case, you would require to sell the units in secondary market. Due to this limitation, the fresh buying of SGB has been blocked.

Moreover, the depositories CDSL and NSDL are regularly in talk with RBI to allow inter DP transfer of units. Once this service starts, you will be able to buy and sell government securities like equity shares.

Comments

  1. Vk shenoy

    I have closed and transferred my entire holding from Geojit (NSDL) to zeroda (CDSL). But my sovereign Gold Bond is not yet transfer informing it cannot be transferred. Can any one tell me the procedure?

    1. Trade Smart Online Article Author

      Hello Mr. Shenoy,
      As you mentioned, both brokers have their DP account with different depositories. As per the regulation, gold bonds can be transferable within the depositories i.e from CDSL to CDSL or NSDL to NSDL. If you have any broker account who hold their DP with NSDL then you will be able to transfer your shares available with Geojit.

  2. Abhinav Somal

    I have mentioned depository type as NSDL wrongly while applying for SOVERIGN Gold bond. Status of application shows bid accepted but I have not received the bond. What will happen in such cases

    1. Trade Smart Online Article Author

      Hello Abhinav,
      We accept Sovereign gold bond bids only through call and trade. And we place the order only for CDSL. Kindly share your client ID. We shall check the order details and update you.

Ask a question