Reserve Bank is also in consultation with stakeholders to simplify operational procedures for seamless movement of securities from SGL form to demat form and vice versa to promote trading of G-sec on stock exchanges. It would be beneficial in this regard if the stock exchanges focus on investor awareness to encourage retail investors.
Incentives for G-sec trading Government may consider providing tax concession on income from debt oriented mutual funds can be a measure aimed towards bringing in new classes of investors as well as encourage further investments in G-sec by existing investors. Providing such concession would incentivise mutual funds and investors to increase participation in the G-sec market.