Dated Government Securities (dated G-Secs) and State Development Loans (SDLs) are the longer-term members of the Government Securities family. Unlike Treasury Bills, they pay periodic interest (a coupon) and run for several years. You can invest in them from Dock → Bids → G-Sec.
What is a dated G-Sec?
A dated G-Sec is a long-term bond issued by the central government. It carries a fixed coupon rate and a maturity year, which is why it is named the way it is — for example 7.43% GS 2076 means a 7.43% coupon maturing in 2076. You receive the coupon periodically and the face value at maturity.
What is an SDL?
A State Development Loan (SDL) is a bond issued by a state government to fund its requirements. SDLs work much like dated G-Secs — a fixed coupon paid periodically over a multi-year tenure — and are also considered very low risk.
How do I receive the interest and maturity amount?
- Interest (coupon): it is paid twice a year (semi-annually) and credited directly to the bank account linked to your demat — not to your trading ledger. No TDS is deducted on this interest. To be eligible for a coupon, you need to be holding the security at least 15 days before the interest date.
- Maturity: when the security matures, this is automatic — the units are debited from your demat account and the face value is credited to your bank account, usually within about 15 working days.
How are these different from a T-Bill?
| T-Bill | Dated G-Sec / SDL | |
|---|---|---|
| Tenure | Short (91 / 182 / 364 days) | Long (several years) |
| Return | Issued at a discount; no periodic interest | Fixed coupon paid periodically |
| Issued by | Central government | Central government (G-Sec) / State government (SDL) |
See What is a Treasury Bill (T-Bill)?.