Retail investors can trade Govt. bonds on NDS starting Aug. 16

Reserve Bank of India has announced  Retail investors can access the government securities (G-sec) market, being used currently by the large institutional players, in a seamless manner from August 16.

Aim:

RBI aims to facilitate efficient access to the retail individual investor to “the same G-sec market being used by the large institutional investor in a seamless manner.”

Details:

The secondary market in G-secs predominantly comprises of banks, primary dealers, insurance companies, mutual funds, financial institutions and other institutional investors.

Most of these entities maintain their holdings in G-secs in their Subsidiary General Ledger (SGL) with the Public Debt Office of the central bank.