Investors can purchase and sell government assets by earning a greater interest rate on bonds than on a regular bank FD.
This course includes
Individual Investors can invest in Government Securities through the retail Direct program, which is a one-stop shop. Independent Retail investors can create a Gilt Securities Account - "Retail Direct Gilt (RDG)" Account with the RBI under this system. Individual retail investors can develop and maintain a 'Retail Direct Gilt Account' (RDG Account) with the RBI.
Investors can make non-competitive bids on all Central Government assets and securities issued by different State Governments in the primary market.
Individuals can, however, join the secondary market through the "NDS OM" - the RBI's trading system - under this arrangement. On due dates, the investor will start receiving any interest paid/maturity funds into his connected bank account.
