Government Bonds
In India, government bonds are issued by the Government of India through the Reserve Bank of India (RBI) and are commonly referred to as Indian government securities (IGS). Here are some key points about government bonds in India:
Types
Government bonds in India are issued in various forms, including: - Government of India Treasury Bills (T-bills): Short-term securities with maturities of up to one year, issued at a discount to face value and redeemed at par. - Government of India Dated Securities: Long-term securities with maturities ranging from 2 years to 40 years, paying periodic interest payments (coupon payments) and redeemable at face value upon maturity. - State Development Loans (SDLs): Bonds issued by state governments to finance their fiscal deficits and development projects.
Issuer
Government bonds in India are issued by the Government of India and, in the case of SDLs, by individual state governments.
Interest Payments
Dated securities and SDLs pay periodic interest payments to bondholders, typically semi-annually or annually. The interest rate, or coupon rate, is fixed at the time of issuance.
Market
Government bonds in India are actively traded in the government securities (G-sec) market, which operates through electronic
