Ownership Pattern of Central and State Government Securities
The subscribers to government securities are the RBI, commercial banks, insurance companies, mutual funds, provident funds, and others.
As is seen from Table 10.9, notwithstanding various reform measures to develop and widen the primary market for government securities, the market continues to be dominated by captive investors such as commercial banks and insurance companies. Banks have traditionally been the dominant investors of the government securities due to SLR requirements. The investment of commercial banks constitutes, on an average, 57 per cent of the stock of government securities even though the SLR of the banks was significantly lowered to 25 per cent in 1997. Banks have ...
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