Question
Q13. With reference to India, consider the following statements:
1. Retail investors through demat accounts can invest in “Treasury Bills” and ‘Government of India Debt bonds’ in primary markets.
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
C. 3 only
D. 2 and 3
Answer: B
Detailed Explanation
• Retail Direct scheme is a one-stop solution to facilitate investment in Government Securities by Individual Investors. Under this scheme Individual Retail investors can open Gilt Securities Account – “Retail Direct Gilt (RDG)” Account with the RBI.
• Retail investors (individuals) will have the facility to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI.
• The investor can place non competitive bids in Primary issuance of all Central Government securities (including Treasury Bills and Sovereign Gold bonds) as well as securities issued by various State Governments.
• Under this scheme, the individual can also access Secondary market through “NDS OM” – RBI’s trading system.
• The investor will automatically receive any interest paid/maturity proceeds into his linked bank account on due dates.
• Central Depository Services (India) Limited (CDSL) is one of India’s leading securities depositories.
• Central Depository Services Ltd (CDSL) was promoted by BSE Ltd. jointly with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank and Union Bank of India.
• CDSL offers other online services such as e-voting e-Locker National Academy Depository EASI (Electronic Access to Security Information) EASIEST (Electronic Access to Securities Information and Execution of Secured Transaction) and mobile application (myeasi m-voting).
