Most economists you meet or read tell you that the US problem is worse – much worse- than the Euro problem. Many of us think that the Americans have pushed the dollar too far and it has to fail. The American debt, the American bank’s date and the NINJA credit cards, NINJA educational loans, […]
The Central Government has something called a fiscal deficit. This has to be funded. The market borrowing of the Central Government is met by issuing dated securities (called G Sec) and 364 day Treasury Bills. This is normally done by issue of a slew of G Secs, T bills, by holding auctions. Money is raised […]
CSGL Account stands for Constituent Subsidiary General Ledger Account (phew!). Certain SGL holders like corporates, PF trusts, individuals, institutions, state governments, Nri, Ocbs, FIIs, – registered with Sebi/Rbi can open a CSGL account but not a SGL account. It is a second SGL account at a PDO so that they can act as a custodian […]
How are government securities classified? Well they are classified as follows: 1. Government of India dated securities – like it says “9.35%GOI2027” – it means it pays 9.35% p.a. – payable twice a year (so strictly speaking it yields more than 9.35%), issuer is Government of India and will mature in the year 2027. 2. […]