In the primary G-Sec markets, issuances are made as per a half-yearly pre-announced calendar. The calendar specifies the amount, tenor and issuance dates. The tenor of the G-Secs goes up to 40 years. GSecs are mostly fixed-coupon bonds, although instruments such as inflation-linked bonds, capital-indexed bonds, floating-rate bonds and bonds with embedded options are also issued. Currently, all issuances are done through weekly auctions.
Building a sound framework with evolving capabilities will require sound governance and practices at all levels and by all actors in this sector. A pilot “test-and-learn” approach may also be adopted for innovations, through which the necessary safeguards are applied to mitigate the potential risks.