To increase retail participation in government securities, Prime Minister Narendra Modi will launch ‘RBI Retail Direct Scheme’ for investors on Friday, November 12. Retail investors can open and maintain their Government Securities Accounts (Gilt Accounts). Reserve Bank of India (RBI) free of charge, a circular said.
The ‘RBI Retail Direct’ facility was announced in February this year to improve easy access by retail investors to the government securities market through online access – both primary and secondary – with the facility of opening their gilt securities account (‘ Retail Direct’) with RBI.
RBI Governor Shaktikanta Das had first flagged the initiative in February’s policy review, calling it a “major structural reform”. In July, the central bank said investors would have access to the central bank’s trading platform for the government, as well as bidding in the primary auction. The securities are called the Negotiated Dealing System-Order Matching Segment, or NDS-OM.
The ‘RBI Retail Direct’ scheme is a one-stop solution to facilitate investment in Government securities by individual investors. Under this scheme, retail investors (individuals) will have the facility to open and maintain ‘Retail Direct Gilt Account’ (RDG Account) with RBI.
The RDG account can be opened through the ‘Online Portal’ provided for the purpose of the scheme. The ‘online portal’ will also provide the following facilities to the registered users such as access to primary issue of Government securities and access to NDS-OM. NDS-OM stands for RBI’s screen based, anonymous electronic order matching system for trading in Government securities in the secondary market.
The launch comes as a move to open up India’s sovereign bond market to individual buyers as it seeks to widen the investor base.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,