UPSC Previous Year Question | Prelims GS | 2021

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?

  1. 1 only
  2. 1 and 2
  3. 3 only
  4. 2 and 3

Answer

Correct Answer

1 and 2

Explanation

Statement 1 is correct: retail investors can buy T-bills and government bonds in the primary market through non-competitive bidding via demat accounts. Statement 2 is correct: NDS-OM is the RBI's electronic order-matching platform for trading government securities. Statement 3 is incorrect: CDSL was promoted by the Bombay Stock Exchange together with several banks, not by the RBI.

Topics: economy, financial markets, government securities market, nds-om and cdsl, retail g-sec access