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NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Debt Instruments and Government Securities

A retail investor in Pune wants to hold Government Securities (G-Secs) in dematerialised form without opening a separate gilt account with a bank. Which facility allows this through a depository participant?

A retail investor can hold Government Securities in the same demat account kept with a depository participant. No separate gilt account is needed. SGL accounts with RBI are meant for eligible institutions, not individual retail investors, so the demat route is the correct one.

  1. AHolding G-Secs only in a Subsidiary General Ledger account with RBI
  2. BHolding G-Secs in the investor's existing demat account with a DPCorrect
  3. CHolding G-Secs only in physical stock certificates
  4. DHolding G-Secs only through a bank's SGL transfer form

Explanation

Government securities can be held in a demat account maintained with a depository participant. Retail investors can therefore hold G-Secs alongside shares in the same demat account. SGL accounts with RBI are for eligible institutions, not individual retail holders, so that option is wrong.

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