UPSC 2021EconomyModerate

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?

A
1 only
B
1 and 2
Correct Answer
C
3 only
D
2 and 3

Explanation

Statements 1 and 2 are correct because the RBI Retail Direct Scheme allows retail investors to participate in the primary market for Treasury Bills and G-Secs, while the NDS-OM is the RBI’s official screen-based electronic trading platform for these securities. Statement 3 is incorrect because CDSL was promoted by the Bombay Stock Exchange (BSE) in association with leading banks, but not the RBI. This question tests the core concept of the institutional framework and recent digital reforms in India’s government securities (G-Sec) market.

Financial MarketsGovernment Securities MarketRetail investorsdemat accountTreasury BillsGovernment of India Debt Bondsprimary marketNegotiated Dealing System-Order Matching (NDS-OM)Reserve Bank of India (RBI)Central Depository Services Ltd. (CDSL)Bombay Stock Exchange (BSE)

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