STCI Primary Dealer Ltd.

Products

Skip Navigation Links.
 

STATE DEVELOPEMENT LOANS

 
State Development Loans, or SDLs, as they are colloquially called, are issuances of the respective states in order to manage their own state finances. The structure and nature of SDLs is broadly similar to that of a fixed rate Dated G-Sec. However, these instruments are generally issued for maturities upto 10 years. Also, reissuances of SDLs are extremely rare. In other words, generally, every SDL auction is an auction of a new SDL security and therefore, the auction process is yield based.

Generally, as SDLs have the backing of the respective states, depending on the fiscal health of the states and the consequent risk element associated in such investments, SDLs are traded at a spread above the benchmark G-Sec security. Liquidity of these securities is yet another factor that has a bearing on SDL valuation. However, investment in SDLs may be a good option for investors seeking to earn higher coupons.

As in Dated G-Sec, institutional player dominate this segment. Foreign flows too, have been permitted in SDLs. Non-competitive bidding is allowed in SDLs to the extent of 1% of the notified amount. The trading and settlement mechanism for SDLs remains the same as in case of Dated G-Sec.

STCI PD has been one of the most active players in the debt market. Apart from participating in SDL auctions on proprietary basis, we also accept Competitive and Non-Competitive bids from clients, thereby benefitting them with wider access to debt market. We also, consistently provide two way quotes in all debt securities.

Clients interested in placing bids in Primary auctions and/or buying/selling SDL securities may contact our Sales Personnel on 022-66202224/25/28. We endeavor to provide the best possible returns to our clients, keeping in line with their overall investment objectives.
 
 

Latest News

The CPI inflation for July 2022 printed at 6.71
The Consumer Price Index (Combined) inflation for July 2022 printed at 6.71%, as compared to 7.01% in the previous month.
--------------------------------------------------
Headline WPI inflation for July 2022
Headline WPI inflation for July 2022 printed at 13.93%, lower than 15.18% in June 2022.
--------------------------------------------------
IIP growth for June 2022 printed at
IIP growth for June 2022 printed at 12.30%, lower than the reading of 19.64% in May 2022, on a year-on-year basis.
--------------------------------------------------
The MPC unanimously decided to hike
The MPC unanimously decided to hike the policy Repo rate by 50 bps in the MPC meeting held on August 05, 2022. Consequently, key policy rates stand as follows: Repo rate at 5.40%, Standing Deposit Facility rate at 5.15%, and Marginal Standing Facility and Bank rate at 5.65%.
--------------------------------------------------