Buying G-securities at an auction? Here are 4 things that you should know
Buying G-securities at an auction? Here are 4 things that you should know
The government, in order to finance its expenses, regularly issues bonds through auctions announced by the RBI. These are called G-secs and, typically, these are bonds that pay interest and have maturities ranging from two to 30 years.
About 5 per cent of the auction amount is reserved for non-competitive bidders, including individuals, who can apply for and buy these bonds. G-secs come with a sovereign guarantee and the payable interest, which is taxable, is determined at the auction.
Eligibility:
Individuals, NRIs, PIOs, HUFs, societies, associations, trusts and other such bodies can apply for G-secs as non-competitive bidders.
Account:
To buy G-secs, an investor must open a constituent security general ledger (CSGL) account with his bank or have a demat account. G-secs have to be bought through banks that submit the investor's bid to the RBI. The payment is made through the bank account ...




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