Hi, Is it possible as a retail investor to buy SBIBIIIR on BSE? I understand that these are SBI Bonds. Are the same rules applicable as other scrips or do these have some special clauses due to their structure?
Going slightly beyond your question since this is not discussed often and for the benefit of others.
#1. Also check out SBIBIVR, I use the code 961703. These 2 codes are same. SBIBIIIR is 961701.
#2. You can buy and sell them just like regular securities. Same commission with my broker.
#3. Do note that SBI pays interest once a year so the price of the bond will keep on increasing every day counting the interest on a daily basis. Besides there is the premium amount which fluctuates based on markets and interest rates, so you can not compare the daily rates exactly, but keep in mind that you will be getting the full year interest in march, and if someone is selling in august, they want to recoup their interest component for the past 3-4 months. And just like stocks fall in value after their x-dividend date, the same will happen to this bond in March. Given that the interest rates are almost 10%, you will likely see a fall of 9-10%.
#4. Bond market is very illiquid so be prepared to buy or sell at a significant difference from the last traded price.
