Home » Economy » Indian financial system-II: Money and capital market in India » Types of Capital Market » Gilt-Edged Market
- These also known as the government securities market
- As the securities are risk free, they are known as gilt-edged i.e. the best quality securities
- The investors in the gilt-edged market are predominantly institutions such as commercial banks, LIC, GIC, and the provident funds
- The transactions in the government securities market are very large. Each transaction may run into several crores or even hundred crores of rupees
- RBI plays a dominant role in the gilt-edged market through its ‘Open Market Operations’