Government Securities Trading Platforms and Registries
Question
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.
Options
1 only
1 and 2
3 only
2 and 3
Explanation
Statement 1 is correct because initiatives like RBI Retail Direct allow retail investors to bid for T-Bills and G-Secs directly. Statement 2 is correct as NDS-OM is an anonymous electronic screen-based trading system owned by the RBI for G-Secs. Statement 3 is incorrect because CDSL was promoted by the Bombay Stock Exchange (BSE) along with leading banks, but not by the RBI. > G-Sec market infrastructure like NDS-OM is operated by the RBI, while depository agencies like CDSL fall under SEBI purview. Answer: (b).
Question details
Year
2021
Paper
GS Paper 1
Question
Q13
Subject
Economy
Sub-topic
Financial Markets & Instruments
Type
Statement-based
Difficulty
Hard
Nature
Current-affairs-linked
Source hint
RBI Retail Direct Scheme / Financial market platforms
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