How to buy a G-Sec on Zerodha Kite

This guide walks through buying Government Securities (G-Secs) in the exchange-traded secondary market through Zerodha’s Kite platform. The secondary market route allows retail investors to buy existing G-Secs without participating in a primary RBI auction. For primary auction participation, a separate RBI Retail Direct account is required; that process is covered in How to bid in an RBI primary bond auction via Zerodha.

The encyclopedic overview of G-Secs on Zerodha covers types of government securities, yield mechanics, duration risk, and tax treatment. This article focuses on the step-by-step procedure for the secondary market.

Background: two routes for buying G-Secs

G-Secs are accessible to retail investors through two distinct routes:

Secondary market on Kite (this guide): Buy already-issued G-Secs from other investors through the NSE’s exchange-traded retail G-Sec segment. Settlement is T+1. Brokerage applies. No account other than Zerodha is needed.

Primary auction via RBI Retail Direct: Submit a non-competitive bid in the weekly RBI G-Sec auction. Receive allotment at the weighted average yield determined by institutional bidders. No brokerage. Requires a separate Retail Direct Gilt Account (RDGA) at RBI. Covered in How to bid in an RBI primary bond auction via Zerodha.

The secondary market route gives flexibility: you can buy any outstanding G-Sec at any time, not just during a specific auction window. The primary auction route lets you access freshly issued G-Secs at the weighted average institutional yield with no intermediary markup.

Step-by-step procedure

Add funds to your Zerodha ledger

G-Sec trades on the exchange settle on T+1. Before placing a buy order, ensure the required funds are in your Zerodha trading ledger.

To add funds:

1. Log in to Kite at kite.zerodha.com.
2. Click the Funds tab in the top navigation.
3. Click Add funds.
4. Select your bank and amount, and complete the IMPS or net banking transfer.

Funds credited before 4 PM on a trading day are typically available for same-day trading. The amount required equals the number of units multiplied by the dirty price per unit (clean price plus accrued interest). As a conservative buffer, add 2% more than the estimated trade value to cover accrued interest.

Search for the G-Sec on Kite

Open Kite on web or mobile. On the web interface, press Ctrl+/ to open the universal search bar.

Type the G-Sec identifier. G-Secs are typically identified by:

• Coupon and maturity: For example, “7.26 GS 2033” refers to the 7.26% coupon government security maturing in 2033.
• ISIN: For example, “IN0020200023”. ISINs are unique to each security and eliminate ambiguity between similar-coupon securities.
• RBI short name: Such as “7.26GS2033” or “6.54GS2032”.

Kite will show matching results from NSE’s and BSE’s debt segments. Select the instrument on the NSE (typically labelled NSE WDM or NSE debt) for better retail liquidity. Add it to a watchlist using the + icon.

If a G-Sec does not appear on Kite, it may be tradeable only on the NDS-OM platform (accessible to banks and primary dealers, not retail investors) or may not have a retail market maker at that time.

Review yield, price, and order book depth

Click the G-Sec in your watchlist to open the detail panel on Kite.

Key data to review:

• Last traded price (LTP): Expressed per unit (face value Rs 100). A price of Rs 96.50 means the bond is trading at a discount (below par), implying a yield above the coupon rate. A price above Rs 100 implies a yield below the coupon rate.
• Yield to maturity (YTM): Kite displays an estimated YTM alongside the price for G-Sec instruments. The YTM is the annualised return if you hold the bond to maturity, accounting for coupon payments and the difference between the purchase price and face value at redemption.
• Market depth: View the five best bids and five best offers. For actively traded benchmark G-Secs (such as the 10-year benchmark), the spread between best bid and best offer is typically Rs 0.05 to Rs 0.20 per Rs 100 face value. For off-the-run G-Secs (less actively traded securities), spreads can be wider.

The benchmark 10-year G-Sec yield is widely tracked. The RBI’s policy repo rate and inflation trajectory drive this yield. As of mid-2026, reference the RBI’s Monetary Policy Report for current rate guidance.

Place a limit buy order with CNC product code

Click the Buy button on the instrument (B key shortcut on web). The order form opens.

• Product code: Select CNC (Cash and Carry). G-Sec purchases are delivery-based; do not use MIS unless you specifically intend to close the position the same day.
• Order type: Select Limit. G-Sec secondary markets for retail investors can have thin liquidity at times; a limit order prevents inadvertent execution at a poor price.
• Quantity: Enter the number of units. The minimum tradeable quantity on NSE’s retail G-Sec segment is 100 units (face value Rs 10,000). Units are priced individually at face value of Rs 100.
• Price: Enter the limit price per unit in rupees. This is the clean price; the actual settlement amount (dirty price) will be higher by the accrued interest. Kite shows the estimated order value below the price entry field, which is the clean-price estimate; add accrued interest manually for a precise settlement figure.

Review the order details and click Buy. The order is routed to the NSE or BSE debt segment.

Monitor order status

After submission, navigate to Orders on Kite. For actively traded benchmark G-Secs, a limit order priced near the LTP typically executes within minutes. For off-the-run securities or at prices away from the market, the order may remain open.

If the order does not execute:

• Review the order book. If no sellers exist at your limit price, raise the limit price toward the best offer.
• Check if the order was accidentally placed in the wrong exchange (NSE versus BSE). Most retail G-Sec liquidity is on NSE.
• Do not place market orders in G-Sec markets; even a momentarily thin order book can result in an unfavourable fill.

Unexecuted limit orders can be modified or cancelled through Orders → Pending orders on Kite at no charge.

Verify demat credit on T+1

G-Sec trades settle T+1. On the business day following the trade date, the G-Sec units appear in Portfolio → Holdings on Kite and in Zerodha Console under Portfolio → Holdings.

Verify:

• The ISIN matches the G-Sec you purchased.
• The number of units is correct.
• The average purchase price reflects the executed trade price.

Coupon payments (semi-annual interest on dated G-Secs) are credited directly to your linked bank account on the coupon dates. They do not appear as Kite credits or as a Console portfolio event. Track coupon receipts through your bank statement or through the Console funds statement, as described in How to track G-Sec coupon receipts on Console.

Maturity redemption: At the G-Sec’s maturity date, RBI redeems the bond at face value (Rs 100 per unit). The proceeds are credited to your linked bank account. The G-Sec units are automatically removed from your demat account.

Tax treatment

Coupon interest

Semi-annual coupon payments on G-Secs are taxable as “Income from Other Sources” at your applicable income tax slab rate. Unlike corporate bonds, TDS does not apply to G-Sec coupon payments to resident individuals. You must declare and pay tax on G-Sec interest in your income tax return.

Capital gains on sale before maturity

If you sell the G-Sec in the secondary market before maturity:

• Short-term capital gains (STCG): Holding period less than 36 months; taxed at slab rate.
• Long-term capital gains (LTCG): Holding period 36 months or more; taxed at 20% with indexation under Section 112.

The 36-month LTCG threshold applies to listed government bonds (longer than the 12-month threshold for equity). For the current tax framework, see capital gains tax in India.

Maturity proceeds

At maturity, you receive Rs 100 per unit. If you purchased at par (Rs 100), no capital gains arise. If purchased in the secondary market at a discount (e.g., Rs 96), the difference of Rs 4 per unit is treated as capital gain (or as interest income depending on the specific CBDT guidance applicable to that security).

What can go wrong

• Accrued interest not budgeted. The settlement amount is always higher than the clean price shown in the order form. Plan for the dirty price, particularly for bonds several months into their coupon period.
• Thin liquidity on off-the-run G-Secs. Only the current benchmark G-Sec (and a few recent issues) have consistent retail market makers. Older series may have no offers visible in the order book. Consider sticking to recent benchmark securities.
• Duration mismatch. Buying a 30-year G-Sec when you may need funds in 3 years exposes you to significant mark-to-market losses if yields rise. Match the G-Sec tenor to your investment horizon or hold only short-dated securities if uncertain.
• Demat credit not visible. In rare cases, T+1 settlement processing delays G-Sec credits. If units are not visible by T+2, contact Zerodha support with the order and trade details.
• Withholding tax on NRI accounts. Non-resident Indian investors have different TDS rates on G-Sec interest. NRI Zerodha accounts should check the applicable DTAA provisions.

Related guides

• G-Secs on Zerodha, encyclopedic overview
• How to buy a T-Bill on Zerodha
• How to bid in an RBI primary bond auction via Zerodha
• How to track G-Sec coupon receipts on Console
• Reserve Bank of India, regulator for G-Sec issuance

Conflict of interest disclosure

WebNotes Editorial Team has no financial relationship with Zerodha, RBI, or any government securities issuer. This guide is produced for informational purposes only and does not constitute investment advice.

References

1. RBI, Government Securities Market in India: A Primer (RBI publication, latest edition).
2. RBI Retail Direct Scheme, Operational Guidelines, 2021, rbiretaildirect.org.in.
3. SEBI Circular, Exchange-traded G-Sec framework for retail investors, SEBI/HO/DDHS/2022.
4. Income Tax Act, 1961, Section 112 (LTCG on listed securities), Section 56 (interest income from other sources).
5. NSE Wholesale Debt Market, Retail segment specifications, nseindia.com.
6. RBI, Outstanding G-Sec ISIN list, rbi.org.in, Securities Market section.