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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 Indía.
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
(c) 3 only
(d) 2 and 3

Answer:

B

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Explanation:

Retail investors can now invest in T-Bills and Governemnt Debt bonds using Gilt Accounts. Banks provide Gilt accounts to individuals who want to invest in government securities and treasury bills. These accounts function as demat accounts specifically for holding these instruments, making it convenient for individuals to invest in government securities.

The Negotiated Dealing System-Order Matching (NDS-OM) is the Reserve Bank of India's electronic order matching system for trading government securities in the secondary market. It operates through a screen-based platform and ensures anonymous and efficient trading of these securities.

CDSL is promoted by BSE Ltd. in collaboration with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, and Standard Chartered Bank.

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