InvestorQ : What is the trading methodology in case of the Retail trading in G-Secs?
Arya Nanda made post

What is the trading methodology in case of the Retail trading in G-Secs?

Dawn Cherian answered.
3 years ago

Trading Methodology: The G-Secs shall be traded on the system and settled at the same price, which will be inclusive of the accrued interest i.e. the Dirty Price as per the market parlance in the Wholesale Debt Market. This is similar to the trading on the cum-interest price as is witnessed in the case of corporate debentures. The minimum order size shall be 10 units of G-Secs with a face value Rs.100/- each equivalent to an order value of Rs. 1000/- and the subsequent orders will be in lots of 10 securities each.

Trading & Exposure Limits: The members of the Retail Debt Segment are permitted gross exposure in government securities along their gross exposure in equity segment up to 15 times of their additional capital deposited by them with the Exchange. However, no gross exposure is permitted to the members against their Base Minimum Capital + contribution of Rs.10 lakhs towards TGF in the cash segment. Transactions done by the members in this segment along with their transactions in the equity segment would form part of their Intra-day Trading Limits and are subject to a limit of 33.33 times of the capital deposited with the Exchange. However, institutional business would not form part of these Intra-Day & Gross Exposure limits.