STCI Primary Dealer Ltd.

Products

Skip Navigation Links.
 

DATED GOVERNMENT SECURITIES

 
Dated G-Secs are securities issued for a tenor ranging from 5 years to 40 years. These borrowings form the crux of the Central Government’s borrowing programme aimed at financing the shortfalls in fiscal balances. Since these are sovereign issuances, they practically carry no risk and hence, are also referred to as risk-free gilt-edged instruments.

G-Secs carry a coupon rate which is paid half-yearly and are redeemed at maturity at par value on maturity date. They qualify as SLR instruments and can also be placed as collaterals for market repo borrowing as well as borrowing under RBI’s Liquidity Adjustment Facility (LAF). Most of the securities can also be placed as collaterals for CBLO borrowing and Securities Guarantee Fund (SGF). The minimum amount in which they can be traded is Rs 10,000.

The G-Secs issuances are managed by the RBI, who on behalf of the Centre, regularly conducts G-Sec auctions every Friday. The total auction size generally ranges between Rs 15,000 – Rs 18,000 Cr. Considering such large issuance size, they are underwritten by Primary Dealers. In the primary market, G-Secs are auctioned on an electronic platform, called the E-Kuber, the Core Banking Solution (CBS) platform of RBI. Commercial banks, Scheduled UCBs, Primary Dealers, Insurance Companies and Provident Funds, who maintain funds and securities account with RBI, are members of this electronic platform. In addition, with a view to provide retail participation, a separate scheme of Non-Competitive Bidding was introduced in 2002. In every G-Sec auction, a maximum of upto 5% of the notified amount is reserved for non-competitive bids. The size of such bids can range from Rs 10,000 – Rs 2 Cr for dated G-Secs.

Dated G-Secs have a very liquid and vibrant secondary market. They can be traded on NDS-OM, Over-the-counter, NDS-OM Web and Stock exchanges. Short selling too, subject to certain restrictions, is permitted.

STCI PD has been one of the most active players in the debt market. Our key functional areas of operation involve underwriting the Government of India bond auctions and aiding in efficient price discovery in Primary and Secondary market. Apart from participating in SDL auctions on proprietory basis, we also accept Competitive and Non-Competitive bids from clients, thereby benefitting them with wider access to debt market. We also, consistently provide two way quotes in all debt securities.

Clients interested in placing bids in Primary auctions and/or buying/selling Dated G-Sec securities may contact our Sales Personnel on 022-66202224/25/28. We endeavor to provide the best possible returns to our clients, keeping in line with their overall investment objectives.
 
 

Latest News

Indias Q2FY18
India’s Q2FY18 GDP rose to 6.3% compared to 5.7% a quarter ago and 7.5% in the year ago period. GVA growth stood at 6.1% compared to 5.6% in Q1FY18
--------------------------------------------------
Fiscal deficit
Fiscal deficit for the Apr-Oct period stood at Rs 5.25 tn which is 96.1% of the budgeted fiscal deficit compared to 79.3% for the corresponding period in the previous year
--------------------------------------------------
In its Fifth
In its Fifth Bi-monthly Monetary Policy, RBI maintained ‘status quo’, leaving key policy rates unchanged.
--------------------------------------------------
Inflation projection
Inflation projection for H2 FY18 was revised marginally upwards to 4.3%-4.7% from 4.2%-4.6% previously.
--------------------------------------------------
Standing 130
Standing 130 bps higher, CPI for the month of November came in at 4.88% as compared to 3.58% in October mainly led by an unabated surge in vegetable and fuel prices. Core CPI also saw an uptick standing at 4.86% in Nov vis-à-vis 4.55% in Oct.
--------------------------------------------------
November WPI
November WPI stood at 3.93% up from 3.59% observed a month ago mainly led by inflationary pressures in primary articles.
--------------------------------------------------
Industrial
Industrial production as measured by IIP saw some moderation standing at 2.2% in Oct as compared to 4.2% in Sep. Strong growth impulses emanating from the mining sector aided, despite the sequential contraction observed in both manufacturing and electricity sectors.
--------------------------------------------------