Constituent SGL Account (Gilt Accounts)
Features
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.
Transactions in smaller amounts allowed.
Statement of Balance available on demand.
Delivery and settlement is guaranteed by CCIL
How to apply ?
Who can open?
- Resident Individuals
- Firms
- HUF
- Institutions
- NRIs
- 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.
Documents Required
- Application Form
- Agreement
- Identity and address proof of the operators of the account
- Copy of PAN card of the operators
- Resolution of the Board/Trust
Services Offered
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.
Account Charges
- CSGL Account opening: - Free
- Annual Maintenance Charges: - Nil
- If the sale or purchase is from Federal Bank, no service charge is levied.
- In other cases, Consolidated charges (Federal Bank charges + Clearing Corporation of India Limited [CCIL] charges) plus GST will be levied per transaction as mentioned below CCIL charges: - The actual charges levied by CCIL for the deals will be collected from the GILT account holder. CCIL charges for G-Sec ₹100 per Cr + GST {Minimum ₹25/- & Maximum ₹ 5000/- per Trade} CCIL charges for T-Bills ₹50 per Cr + GST {Minimum ₹25/- & Maximum ₹ 5000/- per Trade}
|
CSGL consolidated charges for securities |
|||||||||||
|
Face Value Amount in Cr |
Less than* |
₹ 1 |
₹ 5 |
₹ 10 |
₹ 15 |
₹ 20 |
₹ 25 |
₹ 30 |
₹ 40 |
₹ 50 |
₹ 100 |
|
Consolidated Charges G Sec |
₹ 527.25 |
₹ 609.00 |
₹ 1,045.00 |
₹ 1,590.00 |
₹ 2,135.00 |
₹ 2,680.00 |
₹ 3,225.00 |
₹ 3,770.00 |
₹ 4,860.00 |
₹ 5,950.00 |
₹ 5,950.00 |
|
Consolidated Charges T Bill |
₹ 527.25 |
₹ 554.50 |
₹ 772.50 |
₹ 1,045.00 |
₹ 1,317.50 |
₹ 1,590.00 |
₹ 1,862.50 |
₹ 2,135.00 |
₹ 2,680.00 |
₹ 3,225.00 |
₹ 5,950.00 |
*0.25 Cr (for G Sec) and 0.50 Cr (for T Bill)
- NDS OM Web facility is available @ ₹10000 plus GST annually (if availed) (not on pro-rata basis). (Applicants wishing to discontinue the NDS-OM web facility shall inform the bank about the same before commencement of next financial year).
- Demat /Remat facility for securities transfer from your own DP, charges will be ₹500/- plus GST per transaction.
- In case, of successful allotment or transaction of the securities in auction / Internal deals (i.e. deals between the clients which had Gilt Account maintained with Federal Bank) , charges will be ₹500/- plus GST per transaction.
- For auction participation, there will be a fee of Rs.250 plus GST per bid entry.