What does the term 'G-Sec' refer to in the Indian financial market?

💡 Solution & Explanation

Government securities are tradable debt instruments issued by the Central Government or State Governments to bridge fiscal deficits, carrying negligible default risk and acting as benchmark risk-free assets in the financial market. Private corporate houses do not issue G-Secs, and gold-backed bonds constitute a separate asset class altogether. These instruments form the core of open market operations conducted by central banks.