In the investment realm, government security applies to an array of investment products facilitated by a governmental body. The government of many countries rolled out these debt instruments to funds necessary operations. For most readers, the most common security is those items issued by the Reserve Bank in the form of notes, bills, and treasury bonds. Adding up Government securities in your investment portfolio will give you a sense a relief owing to their stable nature. <\/p>\n\n\n\n
Key takeaway: <\/em><\/strong><\/p>\n\n\n\n On\nFeb 5, 2021, RBI came up with an announcement that enables small investors to\naccess government securities trading platforms. Retail investors have the right\nto open their gilt account with Reserve Bank and trade-in g-secs. The decision\nwas nothing short of a major structural reform. <\/p>\n\n\n\n The g-sec market is ruled by banks, mutual funds,\nand insurance companies. These establishments trade in a portfolio of Rs 5 crore\nand above. <\/p>\n\n\n\n Therefore, there is an absence of liquidity in the\nsecondary market for small investors who prefer trading with smaller investment\nportfolios. Simply put, these investors struggle to exits from their\ninvestments. Therefore, direct g-secs trading has still a long way to go before\nit becomes popular among retail investors. <\/p>\n\n\n\n