BANKING AFFAIRS

Detailed explanation-1: -Gilt-edged securities refer to high-grade bonds that some national governments and private organizations issue in an effort to generate revenue. Also known as gilts, these securities were originally issued by the Bank of England.

Detailed explanation-2: -Gilt edged market is the market where buying and selling of government securities takes place. This securities in this market are risk free as government issues these securities.

Detailed explanation-3: -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). G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.

Detailed explanation-4: -Detailed Solution Gilt-edged are high graded low-risk investment instruments issued by the government. Gilt-edged term is used mostly in markets where government securities and bonds are traded. A gilt-edged denotes a high-quality item whose value remains fairly constant over time.

Detailed explanation-5: -Types of government securities in India. In India, RBI provides several G-secs: Treasury Bills, Cash Management Bills (CMBs), Dated Government Securities, State Development Loans, Treasury Inflation Protected Securities (TIPS), Zero-Coupon Bonds, Capital Indexed Bonds, Floating Rate Bonds.