InvestorQ : How do we hold government securities as investments?
Tisha Malhotra made post

How do we hold government securities as investments?

Answer
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Moii Chavate answered.
1 year ago


G-Secs can be held in either of the following forms and all are treated the same:

Physical Security (which is mostly outdated & not used much)

G-Secs can also be held in the SGL (Subsidiary General Ledger) A/c with the Public Debt Office of the RBI. The SGL A/Cs are however restricted only to few entities like the Banks & Institutions

Constituent SGL A/c with Banks or PDs who hold the G-Secs on behalf of the investors in their SGL-II A/Cs of RBI, meant only for client holdings.

Same Demat A/c as is used for equities at the Depositories. NSDL & CDSL will hold them in their SGL-II A/Cs of RBI, meant only for client holdings.