With reference to India, consider the following statements: 1. Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market. 2. The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India. 3. The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given below is/are correct?

QUESTION

Medium

Economy

Prelims 2021

With reference to India, consider the following statements:

Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market.
The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India.
The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.

Which of the statements given below is/are correct?

Select an option to attempt

Explanation

Statement 1 is Correct: Under the RBI Retail Direct scheme, retail investors can participate in the primary market for Government Securities (G-Secs) and Treasury Bills (T-Bills) by opening a Retail Direct Gilt (RDG) account or using existing demat accounts to place bids in auctions.

Statement 2 is Correct: The Negotiated Dealing System-Order Matching (NDS-OM) is an anonymous, electronic, screen-based trading platform for government securities in India. It is owned by the Reserve Bank of India (RBI) and operated by the Clearing Corporation of India Limited (CCIL) on its behalf.

Statement 3 is Incorrect: Central Depository Services Ltd (CDSL) was promoted by the Bombay Stock Exchange (BSE) in association with leading commercial banks such as the State Bank of India, Bank of India, and HDFC Bank. The RBI is the regulator of the banking sector and does not promote CDSL.

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