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

A retail investor wants to buy Government securities (G-Secs) in electronic form through the demat route in India. Where are G-Secs held in dematerialised form when bought through a Depository Participant?

Government securities bought by a retail investor in electronic form are held in the investor's demat account with a depository through a Depository Participant. SGL accounts are meant for eligible institutions, not for ordinary retail investors.

  1. AIn a Subsidiary General Ledger (SGL) account held only by the investor with the RBI
  2. BIn the investor's demat account with a depositoryCorrect
  3. CIn a physical certificate kept with the issuer
  4. DIn a bank locker account held by the clearing corporation

Explanation

Retail investors can hold G-Secs in their demat account with a depository through a DP, just like shares. SGL accounts are for eligible institutions maintained with the RBI or banks, not directly for ordinary retail investors. Physical certificates and bank lockers are not the demat route.

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