Q. 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 above is/are correct?
a) 1 only
b) 1 and 2 only
c) 3 only
d) 2 and 3 only
Correct Answer: b) 1 and 2 only
Question from UPSC Prelims 2021 GS Paper
Explanation :
Treasury Bills and Government Bonds
Retail investors through a demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in the primary market. This is possible through platforms such as the ‘Retail Direct’ scheme launched by the Reserve Bank of India (RBI), which allows individuals to open a Gilt Securities Account (Retail Direct) for investing in government securities both in the primary and secondary markets.
Negotiated Dealing System-Order Matching (NDS-OM)
The ‘Negotiated Dealing System-Order Matching’ (NDS-OM) is a government securities trading platform of the RBI. It is an electronic trading platform that enables the trading of government bonds and T-Bills, and is utilized by a variety of market participants including banks and financial institutions.
Central Depository Services Ltd. (CDSL)
‘Central Depository Services Ltd.’ (CDSL) is not jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Instead, CDSL was established by the Bombay Stock Exchange (BSE) along with other Indian financial institutions. The RBI does not have a direct involvement in the promotion or ownership of CDSL.
