Constituent SGL Account (Gilt Accounts)
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.
- How to apply ?
- Documents Required
- Services Offered
- Invest in government securities and treasury bills.
- 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.
- Periodical 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 is transfer of securities is fully eliminated.
- transactions in smaller amounts allowed.
- Statement of Balance available on demand.
- Delivery and settlement is guaranteed by CCIL
Who can open?
- Individuals, resident NRI's, firms, HUF, institutions, NRI's, PF/ Pension/ Gratuity trusts, urban/town/ primary/ district co-operative banks, credit co-operative societies/ Non banking financial companies/ brokers/ financial intermediaries etc
How to Open?
A Gilt account can be opened by submission of the following documents in the nearest branch of the Federal Bank.
- Application for opening a Gilt account duly supported by relevant documents.
- Agreement executed in stamp paper (stamp duty varies from state to state).
- Application for opening CD/SB account with necessary documents.
- Application Form
- Identity and address proof of the operators of the account
- Copy of PAN card of the operators
- Resolution of the Board/Trust
- Dematerialization of securities held in physical form,
- Subscription to government securities through competitive and non competitive bidding.
- Provide market related quotes for security transaction on request.
- Undertake purchase and sale of Government securities in the secondary market.
- Free fund transfer facility for enabling security transaction.
- Collection of periodical interest and redemption of the securities for credit to CD/SB account.
- Provide training in dealing and setting up treasury of the constituents.
- Advisory services for purchase/sale of securities and for placing bids in security auctions.