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Appendix

Evolution of Indian Bond Market

Over time, the Indian gilts market has evolved considerably, in depth as well as in scope.
Secondary market trading volumes have surged exponentially, from Rs. 1,500 - 2,000 crore a month in 1994-95 to around Rs. 90,000 crore in 2001-02. The number of outstanding securities has also grown - an investor can now choose from 111 securities, as compared with only around 80 in 1994. Further, the scope of maturities has expanded from a maximum of 10 years in 1994 to 25 years now. In fact, securities maturing after 2012 now constitute more than 33% (in terms of outstanding amount) of the total outstanding government bonds. There are also a far greater number and variety of market participants now.

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* Contributed by -
Ankit Chetan & Sudhanshu Duggal,
National Institute of Industrial Engineering (NITIE),
Mumbai.