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 above is/are correct?
- A 1 only
- B 1 and 2 only
- C 3 only
- D 2 and 3 only
Show Answer
The correct answer is B.
Retail investors can invest in Treasury Bills and Government of India Debt Bonds in the primary market through a demat account.
- Retail investors have multiple channels to invest in these securities in the primary market, utilizing the non-competitive bidding facility offered by NSE.
Source: https://www.nseindia.com/products-services/non-competitive-bidding-how-to-invest-g-sec
The 'Negotiated Dealing System-Order Matching' (NDS-OM) is indeed a government securities trading platform of the Reserve Bank of India (RBI).
- It is designed for the secondary market transactions, where retail investors, upon successful registration, can access this platform for buying or selling government securities.
Source: https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51883
Regarding the 'Central Depository Services Ltd. (CDSL)
- It is not jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
- CDSL was established by the Bombay Stock Exchange (BSE) along with other Indian financial institutions, banks, and investment companies.
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