The National Stock Exchange (NSE) on 24 April 2018 announced the launch of its e-Gsec platform which will allow retail investors to invest in government securities and hold them in existing demat accounts. We have launched “e-Gsec” platform for facilitating the non-competitive bidding in Government of India Dated Securities (G-Sec) and Treasury Bills (T-Bills). This will allow retail investors to invest in government securities and hold them in existing demat accounts.
The government issues securities in order to borrow money from the market. Securities are offered to investors through auctions which is competitive and on-competitive. The large investors, such as, banks, primary dealers, financial institutions, mutual funds, insurance companies, etc generally participate in the competitive auctions by placing bids directly on the Reserve Bank of India (RBI).
The Union budget 2016-17 had announced that RBI will facilitate retail participation in the primary markets through stock exchanges. The RBI conducts auction for G-Sec and T-Bills on a weekly basis where 5 per cent of the notified amount is allotted for eligible investors under the scheme for non-competitive bidding facility.