An ambitious campaign is being carried out by Indian brokerage company Zerodha with the goal of encouraging more people to invest in state development loans (SDLs), treasury bills (T-Bills), and government bonds (G-Secs). Zerodha will waive the 0.06% brokerage charge on these investment products as of March 1, 2024.
The program was introduced by Zerodha on X. “To encourage greater participation in Government Bonds (G-Secs), Treasury Bills (T-Bills), and State Development Loans (SDLs), we are waiving the 0.06% brokerage fee beginning March 1, 2024.”
In order to profit from high interest rates, analysts advise investors to think about investing in debt instruments. FPIs have been flooding the debt market with cash even if they are net sellers of Indian stocks.
The following two announcements, among other things, have contributed to this spike in debt investments:
(a) The Fully Accessible Route^ (FAR) G-Sec bonds issued by the Indian government have been confirmed to be included in the JP Morgan Government Bond Index (GBI)-EM Global Diversified (GD) Index and GBI-EM Global Index, effective June 28, 2024.
(b) Additionally, the HDFC AMC has indicated that the FAR G-Sec bonds may also be included in the Bloomberg Emerging Market (EM) Local Currency Index, which will begin to trade on September 20, 2024.
