What is Government of India dated securities (G-Secs) & What type of new G-Secs are issued by Government of India?
Like Treasury Bills, G-Secs are issued by the Reserve Bank of India on behalf of the Government of India. These form a part of the borrowing program approved by the parliament in the union budget . G- Secs are normally issued in dematerialized form (SGL). When issued in the physical form they are issued in the multiples of Rs. 10,000/-. Normally the dated Government Securities, have a period of 1 year to 20 years. Government Securities when issued in physical form are normally issued in the form of Stock Certificates. Such Government Securities when are required to be traded in the physical form are delivered by the transferor to transferee along with a special transfer form designed under Public Debt Act 1944. The transfer does not require stamp duty. The G-Secs cannot be subjected to lien. Hence, is not an acceptable security for lending against it. Some Securities issued by Reserve Bank of India like 8.5% Relief Bonds are securites specially notified & can be accepted as Security fo
