Government bonds in India include Central Government Securities (G-Secs) and State Development Loans (SDLs), debt instruments backed by a sovereign guarantee. G-Secs are issued by the RBI for the Government of India; SDLs by state governments. Retail investors can buy them via RBI Retail Direct or on the NSE and BSE.
Government bonds in India include Central Government Securities (G-Secs) and State Development Loans (SDLs). These carry sovereign guarantee from the Government of India or state governments. G-Secs are issued by RBI on behalf of the Government of India, while SDLs are issued by state governments. Retail investors can buy government bonds directly through the RBI Retail Direct platform or through SEBI-registered bond platforms.
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Where these trade
Government securities (G-Secs and SDLs) aren't currently listed on the OBPP platforms BondDekho tracks. Retail investors can buy them directly through RBI Retail Direct (free) or on the NSE and BSE.
Read: RBI Retail Direct GuideFrequently Asked Questions
How can retail investors buy government bonds in India?
Retail investors can buy government bonds through: (1) RBI Retail Direct — a free platform by RBI for direct purchase, (2) Stock exchanges (NSE/BSE) through your existing demat account, (3) Online bond platforms like GoldenPi and IndiaBonds, (4) Mutual funds that invest in government securities (gilt funds).
What is the difference between G-Sec and SDL bonds?
G-Secs are issued by the Central Government and carry sovereign guarantee. SDLs (State Development Loans) are issued by individual state governments. SDLs typically offer 0.25-0.75% higher yields than G-Secs of similar maturity because they carry slightly higher risk, though no state has ever defaulted on SDL payments.
What returns do government bonds offer in India?
Government bond yields in India currently range from 6.5% to 7.5% depending on maturity. Short-term G-Secs (1-3 years) yield around 6.5-7%, while long-term G-Secs (10+ years) yield around 7-7.5%. SDLs offer 0.25-0.75% more than comparable G-Secs.
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Data is for informational purposes only. BondDekho is not SEBI-registered and does not provide investment advice. Bond yields and ratings are subject to change. Verify details on respective platforms before investing.