GOVERNMENT SECURITIES MARKET

The marketable debt issued by the Government

a n d S e m i - Government bodies which represents a claim on the
Government is called
Government Securities. It is also called as g
i l t e d g e d s e c u r i t y . Government Securities are issu
e d f o r t h e p u r p o s e o f r e f u n d i n g t h e maturing securities
for advance refunding of securities which have not yet
matured, and raising fresh cash resources.
Treasury Bills and Bonds are the examples of Government
Securities. One of the important features
of t h e G o v e r n m e n t S e c u r i t i e s i s t h a t t h e y a r e c o n s i d
e r e d t o b e t o t a l l y secured financial instruments. They
ensure safety of both capital andincome.