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?

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. ​ Which of the statements given above is/are correct? ​

CollectorBabu · Accepted Answer

Correct Answer: 1 and 2 only ​. Statement 1 and 2 are correct:   Retail investors are allowed to buy government securities or G-secs. The RBI has recently announced that retail investors will be provided the access to buy Government securities online through a Non-Competitive bidding way, directly from Stock Exchanges. There are 2 ways to buy Government Securities --Directly buying Government Bonds & T-Bills. --Buying Debt Funds (Mutual Funds) that invest in Government securitie The Negotiated Dealing System Order matching is a government securities trading platform of the RBI. Statement 3 is wrong:  Central Depository Services (India) Ltd (CDSL) is the first listed Indian central securities depository based in Mumbai. It is under the Securities and Exchanges Board of India (SEBI).

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