These instruments are targeted at the retail investors and the effective return on these instruments work out to be higher than the yield on marketable securities which have no tax concessions. The predominance of institutional investors and large borrowing needs of the issuer, i.e. “the sovereign” resulted in market is characterised by very large transaction size.
Though we have provided odd lot segment in NDS-OM for trading in small lot size, there are not many quotes available, thereby discouraging small investors. Thus, the present market for G-sec is not well suited to retail/individual investors who trade in small amounts and are generally buy-and-hold investors. Moreover, G-sec are not actively traded on stock exchanges.