New Delhi, June 8 -- Government securities (G-Secs) are among the safest investment instruments available in India, as they are backed by the sovereign guarantee of the Government of India. Recently, they have been in the news after the government exempted FIIs and FPIs from taxes on capital gains and interest income earned from government securities.

But how can retail investors in India participate in this market? Let's explore the different ways to invest in G-Secs and the key benefits and risks.

Government securities are debt instruments issued by the RBI on behalf of the central and state governments to raise funds from investors. By investing in a G-Sec, you directly lend money to the government and receive interest payments along...