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’