The Reserve Bank of India (RBI) on Thursday allowed demat account holders of NSDL and CDSL to put through trades in government securities (G-Secs) on the Negotiated Dealing System – Order Matching (NDS-OM) platform.
In the first bi-monthly monetary policy statement of 2015-16, the RBI had said that an implementation group with representation from all stakeholders was constituted to recommend specific measures to enable seamless movement of securities from subsidiary general ledger (SGL) form to demat form and vice versa and to provide demat account holders functionality to put through trades on the NDS-OM.
“Taking into account the recommendations of the group, the Clearing Corporation of India (CCIL) was advised to put in place necessary arrangements in coordination with the depositories – National Securities Depository Limited (NSDL) and Central Depository Services (India) (CDSL) – to enable demat account holders to trade on NDS-OM,” it said.
The central bank added that the scheme seeks 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.
“Any individual investor who maintains a demat account with either of the depositories would be eligible to avail of these services. Initially, this access would be facilitated through any of the existing NDS-OM primary members, who also act as depository participants for NSDL and/or CSDL,” the RBI said.
