What are Gilt-Edged Securities?

GILT- EDGED SECURITIES : Government (Central and States) securities and securities
issued by financial institutions such as IDBI, ICICI, etc. are called gilt-edged securities.
These are debt securities issued by the Central Government, State Governments, and
Semi—government agencies. The market for such securities is called gilt-edged market.
Securities issued by port trusts, public sector enterprises, electricity boards are also called
gilt-edged securities. Such securities are in the form of bonds and credit notes. Institutional
agencies such as banks, insurance companies, employees provident funds are the buyers
of such securities. Such securities are fully secured as they have government backing.
The maturity period is varying generally upto 10 to 20 years. Gilt-edged securities market
constitutes the largest segment of the Indian capital market. This market is expanding
rapidly in recent years. Gilt-edged security is highly liquid asset as it can be sold easily..
Tax benefits are available to gilt-edged securities