Significant developments in the Government Securities market

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Introduction of auction based price determination
Development of the RBI’s yield curve for marking to market the G-securities portfolios of the banks
Introduction of the system of primary dealers
Creation of Wholesalers Debt Market segment on the National Stock Exchange the first formal mechanism for the G-securities.
Introduction of DVP (delivery versus payment) for settlement
Increase in the number of players in the G-securities market with the facility for non-competitive bidding in auctions
Establishments of gilt-oriented mutual funds
Re-emergence as an instrument of short term liquidity management
Phenomenal growth in the volume of secondary market transactions in G-securities.
Emergence of self regulating bodies such as the primary Dealers Association of India (PDAI) and Fixed Income and Money Market Dealers association (FIMMDA).

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