Q.What is Government Securities Market?

Government Securities Market = the 'gilt-edged' market for risk-free securities issued/guaranteed by government, regulated by the RBI.

The Government Securities Market, popularly known as the Gilt-edged market, is the segment of the financial market that trades in securities issued or guaranteed by the central government, state governments and semi-government authorities (such as local bodies and public sector undertakings).

Its main features are:

• Safety: these securities are backed by the government, so they are considered free from default risk — hence the term 'gilt-edged' (of the best quality).
• Instruments traded: government bonds, treasury bills, dated securities and similar instruments. …