GOVERNMENT SECURITIES

abhishreshthaa

New member
The marketable debt issued by the government and semi-government bodies which represents a claim on the government is called government securities. It is also called as gilt-edged security.


Government securities are issued for the purpose of refunding the maturing securities for advance refunding of securities which are not yet matured, and raising fresh cash resources. Treasury bills and bonds are the examples of government securities.


One of the important features of the government securities is that they are considered to be totally secured financial instruments. They ensure safety of both capital and income.


Central government securities are the safest amongst all securities. Thus government securities are unique and important financial instruments in the financial market of any country. These securities are normally issued in the denomination of Rs. 100 or Rs. 1000. These instruments are liquid and safe and hence the rate of interest on these instruments is relatively lower. Interest is paid half-yearly.


There are three forms of central and state government securities Stock certificate, promissory note and bearer bond. Bearer bonds and stock certificates are not very popular in India. Government securities currently are in the form of promissory notes.
 

jiten005

Banned
The marketable debt issued by the government and semi-government bodies which represents a claim on the government is called government securities. It is also called as gilt-edged security.


Government securities are issued for the purpose of refunding the maturing securities for advance refunding of securities which are not yet matured, and raising fresh cash resources. Treasury bills and bonds are the examples of government securities.


One of the important features of the government securities is that they are considered to be totally secured financial instruments. They ensure safety of both capital and income.


Central government securities are the safest amongst all securities. Thus government securities are unique and important financial instruments in the financial market of any country. These securities are normally issued in the denomination of Rs. 100 or Rs. 1000. These instruments are liquid and safe and hence the rate of interest on these instruments is relatively lower. Interest is paid half-yearly.


There are three forms of central and state government securities Stock certificate, promissory note and bearer bond. Bearer bonds and stock certificates are not very popular in India. Government securities currently are in the form of promissory notes.

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