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Auction of Government Securities

Currently there are no issuances available.

Auction of Treasury Bills

Security Name Coupon Maturity date Time to maturity Indicative Yield Minimum Amount Bid Close date Action
91 days T Bills Zero Coupon% 05-Jan-2023 0Y 3M 3D 6.04% 10000.0/- 03-Oct-2022 Apply
182 days T Bills Zero Coupon% 06-Apr-2023 0Y 6M 1D 6.48% 10000.0/- 03-Oct-2022 Apply
364 days T Bills Zero Coupon% 05-Oct-2023 1Y 0M 4D 6.69% 10000.0/- 03-Oct-2022 Apply

What are Government Securities?

Debt instruments issued by Government of India

Helps the Government in managing their debt obligation.

Provide fixed interest payout on a half yearly basis

Retail investors can participate through Primary and Secondary markets

How it works?

  • How-NPS-Works

    Investor

  • How-NPS-Works

    Capital is regarded as laon

  • How-NPS-Works

    Bond Issuer Government

How-NPS-Works How-NPS-Works How-NPS-Works How-NPS-Works

coupons

Bond issuer pays interest regularly to investor

Types

Treasury Bills

Issued for a period of less than one year.

Government Securities

Debt instrument issued by Government of India for meeting their debt obligations for a predefined period.

State Development Loans

Debt instrument issued by State Governments for meeting their debt obligations for a predefined period.

Why Should you Invest?

Sovereign Guarantee

G-Secs are guaranteed by Government of India

Higher Returns

Returns are higher than traditional deposits

Liquidity

G-Sec prices are readily available due to highly liquid and active secondary market

Assured Returns

Fixed rate is guaranteed for a predefined tenure.

No TDS

G-Secs do not attract TDS

Non Competitive Bidding

The customers does not have to quote price/yield while placing the bid.

Taxation on Government Securities

Nature of Income Tax Rate *
Interest Income from Government Securities Tax would be calculated as per applicable tax rate
Long Term Capital Gains (Listed Government Securities and no indexation benefit is taken) L 10%
Long Term Capital Gains (Listed Government Securities and indexation benefit is taken) 20%
Long Term Capital Gains (Unlisted Government Securities and indexation benefit is not allowable) 20%
Short Term Capital Gain On Government Securities Tax would be applicable as per applicable slab rate

Process to Buy

  • Login Icon Login to ICICIdirect.com
  • Go to Mutual Funds Go to FD/ Bonds – Government Securities and Click on ‘Apply’
  • Select an ELSS Fund Enter details and click on “Proceed”
  • investment details “Agree” to Terms & Conditions
  • proof of investment Get order confirmation

FAQs

The price of a G Sec, like other financial instruments, keeps fluctuating in the secondary market. The price is determined by demand and supply of the securities. Specifically, the prices of G Sec are influenced by the level and changes in interest rates in the economy and other macro-economic factors, such as, expected rate of inflation, liquidity in the market, etc. Developments in other markets like money, foreign exchange, credit, commodity and capital markets also affect the price of the G Sec.

‘Shut period’ means the period for which the securities cannot be traded. During the period under shut, no trading of the security which is under shut is allowed. The main purpose of having a shut period is to facilitate finalizing of the payment of maturity redemption proceeds and to avoid any change in ownership of securities during this process.

Bonds issued to the public at a discount on face value but redeemed at par are zero-coupon bonds.

Six paise per ₹100 as brokerage/commission/service charges are charged for rendering service to the clients as notified by RBI.

A bond is a debt instrument in which an investor loans money to an entity (typically corporate or government) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money to finance a variety of projects and activities. Owners of bonds are debt holders, or creditors, of the issuer

A Government Security is a tradeable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation. Such securities are short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds or dated securities with original maturity of one year or more). In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).