What are the characteristics of Government securities market?

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Anonymous User asked 14-Nov-2017 in Share Market by Anonymous User
What are the characteristics of Government securities market?

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Anonymous User answered 24-Aug-2020 by Anonymous User

What are the characteristics of Government securities market?

Government securities are the inscriptions which are central government, state government, public sector, municipal corporation, power corporation, transport corporation, and financial institutions like Industrial Finance Corporation of India Industrial Development Bank of India, Credit and Appropriation Corporation of India, Export Credit and Securities Corporation of India. And are issued as market loans by the State Financial Corporation etc.

These securities are an important part of the Indian stock market. At present, 80 percent of the total funds organized in the Wing market are organized with securities. These funds cater to the short term and long term needs of the government.
Central government securities are considered safe in terms of interest payments and return of principal. These securities are free from disregard risk and goodwill risk. These are considered liability and absolute liability liquid assets. Apart from this, this capital ensures the certainty of the price. These are called Date (Dated) government securities because of the date the liability is written in the securities.
Government securities are also called 'Gilt-Edged Securities' or ultimate securities. The ultimate securities include any securities issued by the central government, state governments and non-governmental entities (Municipal Corporation, Municipal Trust, Electricity Corporation, Transport Corporation etc.).
- These securities payments are guaranteed by the government.
- These have marketing feasibility, so they can be sold in the Wing market quickly and easily.
- These securities are highly liquid.
With these, the lending bank gets regular income in the form of interest and dividend. 
They have to do minimum formalities while giving loan against their security.