Explanation:

The gilt-edged market is the market in government securities or the securities guaranteed (as to both principal and interest) by the government. The former include securities of the Government of India and of the slate governments; the latter are securities issued by Local authorities (like city corporations, municipalities, and port trusts) and autonomous government undertakings like development hanks, state electricity boards, etc. The term gilt-edged means ‘of the best quality”. It has come to be reserved for government securities as they do not suffer from the risk of default.