Investors can lock in interest rates for long term with G-secs: Analysts

Direct retail investment facility should lead to better secondary market liquidity in gilts

Earlier, retail investors could invest in government securities (G-secs) via their broker and stock exchanges. Now, they have the option to open a retail direct gilt (RDG) account with the Reserve Bank of India (RBI) and participate in both the primary and the secondary market for gilts.
 
Besides G-secs, they will also be able to invest in state development loans and sovereign gold bonds via this facility. The investment ticket size can be as low as Rs 10,000.
 
More liquidity, improved access
 
Trust in G-secs is likely to rise.
 
“Investors will be more relaxed knowing that