What are government securities (G -Sec)? |
- A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation.
- G-Secs carry no risk of default as Investors are guaranteed return of both interest and principal from Government and hence are called risk-free gilt-edged instruments.
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- In India,the Central Government issues both treasury bills and bonds or dated securities.
- The State Governments issues only bonds or dated securities which are called the State Development Loans (SDLs). State government in India cannot issue T -bills.
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