Question 1

What are Government Securities (G-Secs)?

Accepted Answer

Government Securities (G-Secs) include both Government Bonds and Treasury Bills (T-Bills) issued by the Government of India to raise funds for fiscal needs such as infrastructure development and public welfare schemes. Investors lend money to the government and earn returns in the form of periodic interest or discount-based income at maturity.

Question 2

Who can invest in G-Secs?

Accepted Answer

Both retail and institutional investors can invest in G-Secs through platforms like Grip.

Question 3

Why should I invest in G-Secs?

Accepted Answer

Low Risk: Backed by the sovereign guarantee of the Indian government. Stable Returns: Earn fixed interest through Government Bonds or discount-based income from T-Bills. Liquidity: Can be traded in the secondary market (subject to demand).

Question 4

How do I earn returns from G-Secs?

Accepted Answer

Government Bonds: Earn regular interest payouts (usually semi-annually) and potential capital gains if sold at a higher price in the secondary market. Treasury Bills (T-Bills): Earn returns from the difference between the discounted purchase price and the face value received at maturity.

Question 5

Can I sell G-Secs before maturity?

Accepted Answer

Yes, both Government Bonds and T-Bills can be traded in the secondary market (subject to liquidity).

Question 6

Are G-Secs taxable?

Accepted Answer

Government Bonds: Interest income is taxable as per your income slab. Capital gains (if sold before maturity) are taxed as per STCG/LTCG rules. T-Bills: Returns are treated as short-term capital gains and taxed as per your income slab.

REASON AND BENEFITS

Safety

Stable Returns

Liquidity

Portfolio Diversification

To help you

Frequently Asked Questions