New Delhi: The total volume of government securities traded during the first quarter of this fiscal went up by almost 18% to Rs21,72,022 crore due to growth in securities transacted outright, especially dated papers, reports PTI.
During the last quarter of 2009-10, the total volume of government securities transacted was Rs18,41,227 crore, according to the data from the finance ministry.
"The increase in volume was largely on account of dated securities, which increased by 90% over the previous quarter," it said in a report on Public Debt Management.
Government securities are sovereign securities issued by the Reserve Bank of India (RBI) on behalf of the government of India's market borrowing programme.
Government securities transacted on an outright basis during the quarter saw a jump of 78.11% in volume during the first quarter at Rs10,35,556 crore, against Rs5,81,418 crore.
An outright contract involves direct purchase or sale of government security for the purpose of increasing or decreasing money supply.
Within this segment, dated securities witnessed the biggest growth in volume at 90.49%. They totalled Rs8,95,231 crore during the April-June period of this fiscal, as against Rs4,70,475 crore in the previous quarter.
Transaction of treasury bills accounted for Rs1,22,207 crore in Q1, up 33.48% over the figure of Rs91,554 crore in the last quarter of 2009-10.
The volume of state government securities, however, saw a decline of 6.56% during the quarter under review at Rs18,118 crore, from Rs19,389 crore in January-March period.
The other segment on government securities, repo transaction, also witnessed a downward trend during the first quarter of 2010-11.
Repo transaction, where a borrower in allowed to use a financial security as collateral for a cash loan at a fixed rate of interest, also saw a dip of nearly 10% in volume.
The total volume of government securities transacted as repo transaction went down to Rs11,36,466 crore in April-June, from Rs12,59,809 crore in the previous quarter.
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