abhishreshthaa
Abhijeet S
One of the important features of the government securities is that they offer wide ranging tax incentives to the investors. Therefore, these securities are popular in the market. Investors in these securities get tax rebate under the Income Tax Act. The central government securities have high profile of liquidity.
However, state government and local government securities have limited liquidity. The government securities market in India has two segments, namely, primary market and secondary market.
The issue of securities by central and state government constitutes the primary market. The secondary market comprises the exchange of these securities by the banks, financial institutions, insurance companies, provident funds trusts, primary dealers, individuals and Reserve Bank of India.
However, state government and local government securities have limited liquidity. The government securities market in India has two segments, namely, primary market and secondary market.
The issue of securities by central and state government constitutes the primary market. The secondary market comprises the exchange of these securities by the banks, financial institutions, insurance companies, provident funds trusts, primary dealers, individuals and Reserve Bank of India.