gs1medium

With reference to India, consider the following statements :

  1. 1.Retail investors through demat accounts can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in the primary market.
  2. 2.The ‘Negotiated Dealing System- Order Matching’ is a government securities trading platform of the Reserve Bank of India.
  3. 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?

  1. A.1 only
  2. B.1 and 2
  3. C.3 only
  4. D.2 and 3
▶ Answer & Explanation

Correct answer: B. 1 and 2

Retail investors can indeed participate in the primary market for government securities like Treasury Bills and bonds through their demat accounts. The Negotiated Dealing System (NDS)-Order Matching (OM) platform was developed by the RBI to facilitate electronic trading of government securities, although it has since been replaced by the NDS-OM. However, Central Depository Services Ltd. (CDSL) was promoted by institutions like the Industrial Development Bank of India (IDBI) and the Bombay Stock Exchange (BSE), not the RBI.

Source: UPSC gs1 2021

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