(i) Agencies: Government securities are issued by agencies such as Central Government, State Governments, semigovernment authorities like local Government authorities. 

(ii) RBI Special Role: RBI takes a special and an active role in the purchase and sale of these securities as part of its monetary management exercise. 

(iii) Nature of Securities: Securities offer a safe avenue of investment through guaranteed payment of interest and repayment of principal by the Government. 

(iv) Liquidity Profile: The liquidity profile of gilt-edged securities varies. Accordingly liquidity profile of securities issued by Central Government is high. 

(v) Tax Rebate: A striking feature of these securities is that they offer wide-range of tax incentives to investors.

(vi) Market: As each sale and purchase has to be negotiated separately, the Gilt-Edged Market is an Over The-Counter Market. 

(vii) Forms: The securities of Central and State Government take such forms as inscribed stock or stock certificate, promissory note and bearer bond. 

(viii) Participants: The participants in Government securities market include the Government sector comprising Central and State Governments 

(ix) Trading: Small and less active, banks and corporate holders who purchase and sell Government securities on the stock exchanges participate in trading. 

(x) Issue Mechanism: The Public Debt Office (PDO) of the RBI undertakes to issue government securities. 

(xi) Issue opening: A notification for the issue of the securities is made a few days before the public subscription is open. 

(xii) Grooming Gradual: It is the acquisition of securities nearing maturity through the stock exchanges by the RBI.

(xiii) Switching: It is the purchase of one security against the sale of another security carried out by the RBI in the secondary market as part of its open market operations. 

(xiv) Auctioning: A method of trading whereby merchants bid against one another and where the securities are sold to the highest bidder.