abhishreshthaa
New member
Government securities are issued by central government, state government, semi-government authorities like municipal corporations, port trusts, state electricity boards, public sector enterprises and other government agencies like IFCI, ICICI, IDBI, NABARD, SIDCs and housing boards.
These agencies supply government securities and demand essentially comes from banks, financial institutions and other investors. RBI plays an active role in purchase and sale of these securities as a part of its monetary management exercise. There is no underwriting or guaranteeing required in the sale of government securities, as Reserve Bank of India is policy-bond to buy a substantial portion of the loan unsubscribe by the public.
Dealings in government securities are made through the mechanism provided by the Reserve Bank of India. The brokers and dealers are approved by the RBI who are eligible to deal in these securities.
These agencies supply government securities and demand essentially comes from banks, financial institutions and other investors. RBI plays an active role in purchase and sale of these securities as a part of its monetary management exercise. There is no underwriting or guaranteeing required in the sale of government securities, as Reserve Bank of India is policy-bond to buy a substantial portion of the loan unsubscribe by the public.
Dealings in government securities are made through the mechanism provided by the Reserve Bank of India. The brokers and dealers are approved by the RBI who are eligible to deal in these securities.