Government securities are structured to cater to the needs of both individuals and institutional investors. Since there is a zero risk associated with holding government paper, these instruments are, in the overwhelming number of cases, held to maturity even when holders experience cash flow problems.
What is required are dealers in government securities who would perform the role of market makers, thereby bringing more participants and liquidity to the market. The Central Bank is also currently considering a number of matters touching on open market operations and is developing operational modalities in this regard.