Rbi Notifies Market Making Program To Promote Retailer Participation In G-Sec


The Reserve Bank of India (RBI) on Tuesday notified the market making program to promote individual participation in government securities by providing prices / quotes to holders of Direct Retail Securities (RDG) accounts enabling them to ” buy and sell securities under the RBI Retail Direct program. Prime Minister Narendra Modi launched the RBI Retail Direct Scheme launched on November 12, 2021, to provide one-stop access to facilitate investment in government securities by retail investors.

In this context, to provide liquidity on the secondary market, a market making system, in which the primary dealers will be present on the NDS-OM platform (odd segments and Request for Quotes) during market hours and will respond to inquiries. buy / sell requests from Gilt Direct Account Holders (RDGAH) has been notified. According to the market making system, the primary dealers will rely on the Know Your Customer (KYC) verification of RDG account holders carried out within the framework of the direct retail sales system.

“No further KYC verification is required to transact with RDG account holders on the RFQ segment of NDS-OM,” the RBI said. “NDS-OM”, or Negotiated Dealing Segment Order Matching, refers to the RBI’s anonymous electronic on-screen order matching system for trading in government securities in the secondary market.

The “Request for Quote (RFQ)” segment refers to the on-screen trading system of the RBI’s NDS-OM system. As part of the RBI Retail Direct program, retail investors (individuals) have the option of opening a Gilt Retail Direct account online (RDG account) with RBI. These accounts can be linked to their savings accounts.

Individual RDG Accounts can be used to participate in government issuance and secondary market transactions through the onscreen NDS-OM.

First publication: STI


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