Government securities (G-secs) are debt instruments issued by the Government of India to borrow money from investors. When investors buy government securities, they lend money to the government for a fixed interest payment.
G-secs are issued by the RBI, it carries sovereign backing, which means repayment of interest and principal is supported by the Government of India.
Most of the government securities pay a coupon rate at regular intervals, while some may also offer floating interest.
Government securities are available with a wide range of maturity periods ranging from 91 days to 40 years.
The government securities can be bought or sold in the market through stock exchanges or regulated platforms.
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