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We as a Primary dealer registered with RBI are allowed to maintain two types of SGL account. On account for the investments held in own account and other for holding the investments on behalf of the Constituents in the books of Public Debt Office of the Reserve Bank of India called Constituents Subsidiary General Ledger Account (CSGL). Primary Dealers have been permitted to act as custodians on behalf of their constituents for holding their Treasury Bills and Government securities in scripless / dematerialised form in accounts known as Gilt Accounts.
- Beneficial ownership of the Treasury Bills and Government securities held in such accounts vests with the constituent investors who are also referred to as Gilt Accountholders (GAH).
- A Gilt Account can be compared with a bank account, except for the difference that the account is debited or credited with Treasury bills or Government securities instead of money.
- On purchase of Treasury bills / Government securities, they would be credited to the Gilt account, whereas on sale they would be debited to the Gilt Account.
Road map for becoming an esteemed customer of IDBI Gilts
Sign an agreement and accept the terms and conditions of the Company
Filling of account opening form,
Provide with necessary KYC and other supporting documents duly certified and information such as bank account details etc.
Opening of a sub account with the Company.
Linking of the sub account and the bank account.
Obtaining the welcome kit provided by the Company
Eligibility Criteria for Opening a GILT Account
Any entity including firms, companies, corporate bodies, institutions, state governments, provident funds, trusts, NRIs, Overseas Corporate Bodies and Foreign Institutional Investors registered with SEBI and RBI are eligible to invest in government securities and also open a gilt account with a primary dealer.
- Treasury bills and Government Securities are maintained in a scripless or demat form.
- Expeditious transactions can be undertaken.
- It obviates the necessity for physical movement of scrips.
- The government securities are transferred to Gilt Account on the settlement day.
- Reduces counterparty risk due to speedy settlement.
- Collection and payment of maturity proceeds and interest is faster as the interest and maturity proceeds would be collected by the Primary Dealer, and paid to the Gilt account Holder.
- Reduces administrative burdens for the gilt account holder.
- Option of conversion into physical scrips when required is available to the gilt account holder.
- No registration of security required with Public Debt Office of RBI.
Facilities we provide to a GILT Account holder.
The following facilities are extended to Gilt Account Holders (GAH):
- Advices: On purchase or sale of a government security IDBI Gilts sends an advice to the GAH giving full details of the transactions entered into on behalf of the GAH for confirmation.
- Statements: The company sends a a statement of the Constituent as at the end of each quarter, if there are no transactions during the quarter and once in a fortnight for the fortnight in which transactions have been conducted and also at the specific request of the Constituent..
- Audited Certificates: IDBI Gilts may also send a yearly statement to GAH confirming the balances of the securities in the GAH’s account on their specific request. This statement shall be sent after being certified by the auditors.
- Securities that can be maintained in the account: Government dated securities, State development loans, Treasury bills
- Interest collections: On interest collection dates IDBI Gilts collects the interest on government securities held in demat form from the Reserve Bank of India on behalf of GAH and pays the same to the GAH.
- Collection of redemption proceeds/Maturity proceeds: The maturity proceeds of Treasury bills and government securities are collected by IDBI Gilts from Reserve Bank of India on the due date and paid to the GAH.
- Primary Market auctions: IDBI Gilts submits bids in Primary Market auctions of government securities as per instructions received from the GAH on their behalf.
- Open market operations: IDBI Gilts also undertakes activities in the open market operations of Reserve Bank of India on behalf of the GAH, as per their instructions
- Advisory Services: The GAH may be provide with from time to time with advises with regard to investment in Debt Instruments and peovide with guidance, if requested for, maintenance of proper portfolio.
Our Motto
Our motto is to provide you with prompt services without any delay and with full satisfaction. We shall ensure to provide you with prompt services and
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