InvestorQ : How exactly are government securities (G-Secs) issued by the RBI?
Mahima Roy made post

How exactly are government securities (G-Secs) issued by the RBI?

Answer
user profile image
Aditi Sharma answered.
1 year ago


G-Secs are issued by RBI in either a yield-based (participants bid for the coupon payable) or price-based (participants bid a price for a bond with a fixed coupon) auction basis. The Auction can be either a Multiple price (participants get allotments at their quoted prices / yields) Auction or a Uniform price (all participants get allotments at the same price). RBI has recently announced a non-competitive bidding facility for retail investors in G-Secs through which non-competitive bids will be allowed up to 5 percent of the notified amount in the specified auctions of dated securities.