Finance Minister Jaswant Singh will launch screen-based retail trading in government securities (G-sec) on the stock exchanges in New Delhi on Thursday.

The retail trading in the government paper would be Bombay Stock Exchange on-line-trading platform in the same manner as transactions are conducted in equities at 7,000 terminals in 400 towns, BSE said in a release in Mumbai on Wednesday.

The exchange would permit trading in retail debt segment through broking members who fulfill the eligibility criterion. The trading would also be done through the portal www.bsewebx.com to bring such trading within the direct reach of investors, it said.

The trading in g-sec would be done in a new group "G" through different scrip codes, BSE said, adding members would have to follow specific risk management practices.

The list of eligible government securities for trading would be issued on Thursday.

The broking members need to have a minimum net worth of Rs 1 crore (Rs 10 million) to trade in "G" group and they would also be required to make an additional contribution of Rs 500,000 for separate trade guarantee fund.

The members would be allowed to take gross exposure in "G" group securities along with their exposure in equity segment up to 15 times their additional capital deposited with the stock exchange, it said.