Published Paper Details:

This research paper presents a comprehensive overview of the Government Securities (G-Sec) market in India, aiming to provide a foundational and analytical perspective on its structure, evolution, and significance within the Indian financial ecosystem. The study adopts a multi-pronged approach that blends historical context, regulatory developments, and market trends to outline how the G-Sec market has emerged as a cornerstone of the country's fixed-income segment. The analysis begins by tracing the evolution of the G-Sec market, from its inception to the present, highlighting key policy milestones such as the introduction of auctions, dematerialization, and the development of the secondary market. It delves into the classification of securities such as dated G-Secs, treasury bills (T-Bills), and State Development Loans (SDLs) while explaining their issuance processes, investor base, and maturity structures. Core sections of the paper evaluate critical market components including yield curves, interest rate dynamics, liquidity patterns, and the role of primary dealers and institutional investors like banks, insurance firms, and mutual funds. Emphasis is placed on recent innovations such as STRIPS (Separate Trading of Registered Interest and Principal of Securities), and the growing participation of retail investors via platforms like RBI Retail Direct. Further, the research contextualizes the Indian G-Sec market within the global fixed-income landscape, comparing yields, monetary transmission effectiveness, and fiscal linkages. Quantitative insights are supported by RBI bulletins, CCIL reports, and market data to present trends in trading volume, outstanding issuances, and market depth. This integrated study offers a well-rounded understanding of the strategic importance of the G-Sec market in facilitating government borrowing, guiding monetary policy, and anchoring the domestic interest rate structure, thereby underlining its vital role in India's macro-financial stability.