Constituent SGL account is opened by the bank for constituents who wish to invest in government securities and treasury bills. Bank will in effect maintain a demat account for these instruments in the name of the constituents.
Strict security under strict guidance of the Reserve Bank of India.
Periodic coupon payments are automatically credited to the SB/CD account of constituents.
Securities are credited to the gilt account on the value date of purchase/allotment.
The transaction amount is debited from the fund account (SB/CD) of the Gilt account holder only on the date of purchase/allotment in the case of auctions.
Sale proceeds are credited to the SB/CD account of the gilt account holder on the date of sale itself.
Periodic interest is credited to the fund account on due dates.
Redemption amount is credited to the SB/CD account on due dates.
No risk of theft / fraud / misappropriation / loss as the holdings are in demat form.
Delay in transfer of securities is fully eliminated.