G-Secs-Secondary Market - Notes on Reserve Bank of India

This section has been divided into 2 parts ## 1. Open Market Operations ### 1.1 Outright transactions in G-secs in Secondary Market 1. They are carried out buy buying/selling government securities (including buybacks) through auction, and are also called OMOs by RBI 2. A detailed note is [[Open Market Operations (OMOs)|here]]. ### 1.2 Reversible Transactions in G-Secs in Secondary Market 1. [[Liquidity Adjustment Facility (LAF)|Liquidity Adjustment Facility-LAF]] (Between RBI and market participants) ## 2. Between market participants Here RBI participates is not often. ### 2.1 Outright Transactions in G-Secs in Secondary Market 1. This [[Outright Transactions in G-Secs in Secondary Market|note]] has more details. ### 2.2 Reversible Transactions in G-Secs in Secondary Market 1. [[Repos and Tri-Party Repo#^9de7da|Tri-party Repos in G-Secs]] 2. [[Repos and Tri-Party Repo#^a11ed6|Market Repos in G-Secs]] ## By Instruments 1. Many securities issued in the primary auction are not available for trading in the G-Secs 1. Savings Bonds, Special Securities and Cash Management Bills (CMBs) are not traded in secondary market 2. [[STRIPS]] are traded in the secondary market, but are not issued in the primary auctions 3. As they are traded on NDS-OM in the secondary market on NDS-OM, CCIL website gives us the data on the securities which are traded in the secondary market. ## An Empirical Analysis of Monetary and Fiscal Policy Interaction in India This section has notes on the relationship between monetary and fiscal policy as presented in this working [paper](https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=13841Link) titled 'An Empirical Analysis of Monetary and Fiscal Policy Interaction in India'. ## Electronic Trading Platform (ETP) [Link](Forex%20Markets.md#1.3%20Electronic%20Trading%20Platform%20(ETP)) ## Data Releases 1. Weekly 1. WSS - Market Borrowings by the Government of India and State Governments - Dated Securities 2. Monthly Bulletin 1. Tables 1. Ownership Pattern of Central and State Governments Securities 2. Combined Receipts and Disbursements of the Central and State Governments 3. Quarterly 1. Public Debt Management, [Quarterly Report](https://dea.gov.in/reports-public-debt-management), by DEA, Ministry of Finance, Govt. of India 4. Research/Publications by CCIL 1. CCIL SDL Quarterly - A dedicated publication capturing quarterly trends in the SDL market. 2. [Rakshitra](https://www.ccilindia.com/researchintroduction) - The monthly CCIL newsletter containing analysis of outstanding G-Sec debt, domestic/international macro indicators, and market developments. 3. Monthly Review of Economy - Contains updates on macroeconomic trends impacting SDL issuances 5. Data & Statistics by CCIL 1. [Market Watch](https://www.ccilindia.com/market-watch): Real-time/daily tracking of market trading 2. [G-Sec Historical Trades](https://www.ccilindia.com/g-sec-historical-trades): Provides trade-by-trade details of outright transactions in the G-Sec market, including T-Bills. 3. Daily Data>Market Summary, Category Analysis, Security Analysis - Provides daily updates on volume, trade, and outright/repo settlement of SDLs. 1. Category Analysis-Detailed reports on the market share and buying/selling activity of different participant categories (e.g., Foreign Banks, Mutual Funds, Primary Dealers). 4. [Tenorwise Indicative Yields](https://www.ccilindia.com/tenorwise-indicative-yields):** Tables showing yield movements across benchmark tenors for G-Secs, Treasury Bills, and State Development Loans (SDLs). 5. State Government Spread Analysis - Analyses spread trends between G-Secs and SDLs to assess market premiums 6. [G-Sec Market Liquidity Tracker](https://www.ccilindia.com/g-sec-market-liquidity-tracker) Analyzes market liquidity indicators, including bid-ask spreads, turnover ratios, and impact costs. 7. SDL Index - It is an indicator of the performance of state securities (in terms of price change and accrued interest) 1. It consists of 14 most recently issued 10-year maturity securities of 14 states 2. Methodology - [December 2025 version](https://www.ccilindia.com/documents/43866/1292813/CCIL%20SDL%20Index%20Methodology_1764580676693.pdf) 8. [Outstanding Debt](https://www.ccilindia.com/outstanding-debt) # Related 1. [[Open Market Operations (OMOs)]] 2. [[Repos and Tri-Party Repo]] 3. [[Money Market Operations (MMO)]] 4. [[Reserve Money]] 5. [[State Development Loans]] 6. [[STRIPS]] 7. [[Fiscal-Monetary Policy Interface in India - OPEN]] 8. [[Fiscal-Monetary Co-ordination in India - An Assessment 2013 OPEN]] 9. [[Fiscal Policy and Economic Reforms OPEN]] 10. [[Financial Stability-Issues and Challenges - By Duvvuri Subbarao, 2009]] # References 1. Budget and RBI : New Directions - A [speech](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=227) by Dr. Y.V. Reddy at Hyderabad on March 8, 1997 2. [Report](https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/CR488_1991CDEB13B8887D426EAEF117AE7A61A72D.PDF) on Development of Government Securities Market In India - Sept. 20, 1991. 3. A [decade](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=5716) of Reforms in Government Securities Market in India and the Road Ahead - by Rakesh Mohan - RBI Bulletin, Nov 22, 2004 4. [Report](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=443) of the Internal Technical Group on Central Government Securities Market - 2005 5. RBI. (2007). *Government Securities Market*. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=503) 6. [The Government Securities Act, 2006](https://www.rbi.org.in/commonman/english/Scripts/FAQs.aspx?Id=380) 7. RBI.(2008, Winter). _Auctions of Government Securities in India - An Analysis_. \[RBI, Occasional Papers Vol. 29, No. 3, Winter 2008\]. [Link](https://www.fimmda.org/uploads/general/01agrs08091.pdf) 8. Determinants of [Primary Yield Spreads of States](https://www.rbi.org.in/scripts/PublicationsView.aspx?id=13553) in India: An Econometric Analysis - August 2011, RBI [Working Paper Series](RBI Working Paper Series No. 10) No. 10 9. [Report](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=677#f2) of the Working Group on Enhancing Liquidity in the Government Securities and Interest Rate Derivatives Markets - Aug 13, 2012. 10. RBI. (2011, December 9). _Changing Contours of Debt Management_. \[Address by Shri G Padmanabhan, Executive Director at the Annual Meet of Primary Dealers Association of India on January 17, 2015\]. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=936) 11. [RBI Bulletin-July 2020](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=19658): Liquidity Management in the Time of Covid-19: An Outcomes Report 12. [Open Market Operations in India – An Appraisal](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=21536#FN3) - Jan 19, 2024 13. [Government Securities Market in India – A Primer](https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx?Id=711) - [FAQs](https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx), April 1, 2024 14. Evolution of financial markets in India: Charting the Future-[Speech](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1430#:~:text=Markets%20for%20Funding-,Government%20securities%20market,-9.%20A%20key) by Shri Shaktikanta Das, April 08, 2024 15. Status [Paper](https://dea.gov.in/sites/default/files/Status%20Paper%20on%20Government%20Debt%20for%202022-23.pdf) on Government Debt for 2022-2023, released on July 15, 2024. [Budget Division](https://dea.gov.in/divisionbranch/budget-division), Department of Economic Affairs, Ministry of Finance. 16. An Outline of Post 2009 FRBM Fiscal Architecture of the Union Government in the Medium Term-[Research Paper](https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2038) 17. CCIL Monthly Newsletter [Rakshitra](https://www.ccilindia.com/web/ccil/rakshitra) - [October, 2024](( https://www.ccilindia.com/documents/d/ccil/Outstanding_Government_Debt%20Rakshitra-pdf)). 18. [CCIL Broad and Liquid Index](https://www.ccilindia.com/documents/43866/1293307/CCIL%20Bond%20Index%20Methodology_1716298351593.pdf) - [October 2024](https://www.ccilindia.com/documents/43866/1293201/Factsheet_1731062221375.pdf) 19. Chapter on Debt Market - [NSE](https://nsearchives.nseindia.com/web/sites/default/files/inline-files/ISMR-chapter6-web.pdf) 20. Framework for [Sovereign Green Bonds](https://dea.gov.in/sites/default/files/Framework%20for%20Sovereign%20Green%20Bonds.pdf) of Government of India. 21. Can countries prefer to default when it owes more debt to external creditors? 1. [Link 1](https://www.nber.org/system/files/working_papers/w17542/w17542.pdf) 2. [Link 2](https://www.elibrary.imf.org/view/journals/001/2023/177/article-A001-en.xml) ### [[Publications (Data Releases) & Research#Publications|Publications]] 1. RBI.(Oct 19, 2023). Impact of G-Sec Yield Movements on Bank Profitability in India by Radheshyam Verma and Rakesh Kumar. RBI Bulletin-Oct 2023. [Link](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=22125) | [pdf](RBI_Monthly_Bulletin_Article_20231019_Impact%20of%20G-Sec%20Yield%20Movements%20on%20Bank%20Profitability%20in%20India.pdf) 2. RBI. (2007). [Manual on Financial and Banking Statistics - March 2007](https://rbi.org.in/scripts/AnnualPublications.aspx?head=Manual%20on%20Financial%20and%20Banking%20Statistics%20-%20March%202007) [Groups/Committees](Groups%20and%20Committees.md) 1. RBI. (Sept 20, 1991). [Report](https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/CR488_1991CDEB13B8887D426EAEF117AE7A61A72D.PDF) on Development of Government Securities Market In India by T. Anantharam Iyer. [pdf](RBI_Group-Committee_Report%20on%20Development%20of%20Government%20Securities%20Market%20in%20India%201991_T.%20N.%20Anantharam%20Iyer.pdf) 2. RBI. (Aug, 2012). Working Group on Enhancing Liquidity in the Government Securities and Interest Rate Derivatives (Chairman: Shri R. Gandhi). [pdf](RBI_Group-Committee_20120813_Report%20of%20the%20Working%20Group%20on%20Enhancing%20Liquidity%20in%20the%20Government%20Securities%20and%20Interest%20Rate%20Derivatives%20Markets.pdf)