This fragmented G-Sec market has neither been beneficial to the issuer nor the investors. In spite of some passive consolidation of government securities undertaken by the Reserve Bank of India, the market remains fragmented with many stocks with relatively small size. Nearly fifty percent of the outstanding stocks has volume less than 200 billion.
6  BIS central bankers’ speeches  The economic recovery hinges upon the setting in motion of a virtuous circle, whereby an improved economic outlook fosters the strengthening of the banking system, so that the latter can, in turn, supply credit to the real economy, with positive feedback effects on expectations, and so on.