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About Traded on CM


Government Securities

Government of India Dated Securities (G-Secs), State Development Loans (SDL) and Treasury Bills (T-Bills) are issued in the primary market to raise/ borrow money through auctions conducted by Reserve Bank of India (RBI) and form a part of the Indian Government Bond Market.

About G-Secs, T-Bills and State Development Loans

  1. Government of India Dated Securities:

    1. G-sec are Bonds issued by the Central Government of India and the auctions take place through RBI
    2. They are generally fixed maturity and fixed coupon securities carrying half yearly coupon payment.
    3. These are long-term bonds which are issued for more than 1 year (1 - 40 years)
    4. They are redeemed at face value on maturity
  2. Treasury Bills:

    1. T-bills are bonds issued by the Central Government of India and the auctions take place through RBI
    2. They are zero coupon short-term bonds
    3. They have maturity less than a year of 91 days, 182 days & 364 days
    4. T-bills are issued at a discount and mature at par value of the bond
  3. State Development Loans:

    1. State Development Loans (SDL) are securities issued through RBI on behalf of State Governments to meet their borrowing requirements
    2. SDLs are generally fixed maturity and fixed coupon securities carrying half yearly coupon paying bonds
    3. Largely issued in the range of 3-35 year maturities
    4. Redeemed at face value on maturity

Benefits of Investing in Government Bond Market

  • Safest of all investments subject to interest rate and liquidity risk
  • Assured Periodic Returns. Regular stream of income every six months in form of coupon for SDL and G-sec
  • Available across the maturities, so one can plan for their life goals
  • Competitive returns compared to fixed deposits (FDs) for long dated securities
  • Government Bonds can be sold in secondary market
  • Possibility of Capital Appreciation
  • Can be used as collateral against loan / as collateral to Exchanges 
  • No tax deducted at source*

*Interest and capital gains are taxable

Secondary Market Trading

The Government Securities will be available for trading in Capital Market Segment. The securities will be traded along with the equity shares, ETFs etc.

The broad trading parameters of Government of India dated Securities, SDL and T-bills under the capital market segment are as follows:

Parameter Government of India dated Securities SDL T-bills
Market type Normal Normal Normal
Symbol “Coupon” ”GS” ”YYYY” (eg: 772GS2049) “contractual maturity in days” ”D” ”DDMMYY” (eg: 91D050320) “contractual maturity in days” ”D” ”DDMMYY” (eg: 91D050320)
Series GS TB TB
Face Value 100 100 100
Quotation Dirty price Dirty price Dirty price
Market lot 100 100
Tick size 0.01 0.01 0.01
Qty freeze Existing cash market parameters Existing cash market parameters Existing cash market parameters
Price band 5% 5% 5%
Settlement Multilateral netting Multilateral netting Multilateral netting
Handling of delivery shortages Financial close-out at the highest price prevailing from the day of trading till T+1 day or 5% above the settlement price on the T+1 day, whichever is higher Financial close-out at the highest price prevailing from the day of trading till T+1 day or 5% above the settlement price on the T+1 day, whichever is higher Financial close-out at the highest price prevailing from the day of trading till T+1 day or 5% above the settlement price on the T+1 day, whichever is higher
Settlement Demat Demat Demat
Updated on: 27/07/2020
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