The minimum transaction amount through this route will be ₹10,000. | Photo Credit: designer491

In a bid to attract more retail investors to invest in government securities (G-Secs), the Reserve Bank of India plans to allow them to transact in the securities via demat accounts. The minimum transaction amount through this route will be ₹10,000.

Currently, retail investors participate in the G-Sec market by opening and maintaining the “Retail Direct Gilt (RDG) Account” with RBI.

As on June 22, the number of RDG accounts stood at 3,71,439. In sharp contrast, as of April-end 2026, the number of demat accounts stood at 22.7 crore.

So, if the demat account holders are allowed to transact in G-Secs, the debt market could become more vibrant.

An individual participant maintaining a demat account opened through a depository participant bank which is a direct member of NDS-OM (Negotiated Dealing System – Order Matching) may undertake transactions on NDS-OM through the depository participant bank, per the Draft Master Direction - Reserve Bank of India (Secondary Market Transactions in Government Securities) Directions, 2026.

Further, an individual participant maintaining a demat account with a SEBI-registered depository may undertake transactions on NDS-OM through the stock broker connect facility.

Transactions in G-Secs shall be undertaken on price basis or yield basis. Such transactions shall be undertaken for a minimum amount of ₹10,000 (face value) and in multiples of ₹10,000 thereafter, or any other amount as may be specified by the Reserve Bank, per the draft directions.

Short sale transactions

RBI said entities such as scheduled commercial banks; standalone primary dealers; urban cooperative banks and any other regulated entity with the approval of the respective financial sector regulator can undertake short sale transactions in G-Secs, excluding Treasury Bills.

Short sale of a G-Sec means sale of a security one does not own. But this shall not include the sale of a G-Sec that is not in immediate possession of the entity selling the Government security but will be received by the time of settlement (e.g., Government securities used to avail of intra-day liquidity, Government securities placed as margin with clearing houses, etc.).

When issued security

RBI said new and reissued government securities issued by the Central government shall be eligible for ‘when issued’ transactions if so, indicated in the specific auction notification.

‘When issued security’ means that a G-Sec that has been authorised for issuance/re-issuance but has not yet been issued/re-issued.

‘When issued’ trading takes place between the time a G-Sec is announced for issuance/re-issuance and the time it is actually issued/ re-issued. This helps price discovery.

Published on June 25, 2026