Civil Services Prep

Prelims 2021 · Economy · Question 13

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?

  1. 1 only
  2. 1 and 2
  3. 3 only
  4. 2 and 3

Answer

1 and 2

1. Correct. Under RBI Retail Direct, retail investors can open a Retail Direct Gilt account and invest in primary issuances of Treasury Bills and Government of India dated securities; demat-based access for retail participation is allowed through recognized channels.
2. Correct. NDS-OM (Negotiated Dealing System–Order Matching) is RBI’s electronic trading platform for Government securities.
3. Incorrect. CDSL was promoted by BSE and other institutions/banks; it is not jointly promoted by RBI and BSE.

Hence, statements 1 and 2 are correct.

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