SEBI Chairman Ajay Tyagi on Monday launched India’s 1st Web Platform and Mobile App for Government Bonds. Now investors can buy government bonds through a mobile app, like they can invest in an equity share. NSE goBID is the first aggregator initiative making buying-selling of G-Sec on its Web platform and Mobile App for the retail investors.
The launch of NSE goBID is a part of the initiative to broaden the investor base to the retail segment for buying-selling of Government Bonds.
Through NSE goBid App, retail investors can invest in treasury bills (T-Bills) and various government bonds from one year to almost 40 years. Investment can be done almost every week after a one-time registration.
The ‘NSE goBID’ platform will handle order collection, payment and refund that is currently required to be managed by Trading Members.
Advantage for Retail Investors, investing in G-Sec, over Bank / Corporate FDs:
1) Higher returns: at different points of G-Sec yield curve the differential is 20 – 30 bps over FDs ..in fact at the long end yield difference is 50-70 bps. 1 year treasury bill yield is 7.33%, 5-year is 7.65% and 10 year is 7.82%
2) Investment in G-Sec is entirely credit risk free as its supported by sovereign guarantee.
Importantly, to popularise retail interest and investment in Government Bonds, NSE has introduced incentive scheme based on total face value collected and no of unique clients introduced. Depending on the criteria, incentive is on an incremental basis – INR 25-100 per client introduced per month, and INR 0.20 per INR 100 for total monthly collection above INR 5 crores.
