To facilitate better access for individual retail investors to the government securities (G-Secs) market, the RBI said individuals holding demat accounts will soon be able to access secondary markets in securities via its negotiated dealing system-order matching (NDS-OM).
“It has been decided to facilitate access to NDS-OM by the retail segment comprising individual investors having demat accounts with depositories — National Securities Depository (NSDL) and/or Central Depository Services (India) (CDSL), desirous of participating in the G-Sec market, by using their demat accounts for their transactions and holdings in G-Sec.
“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 in a notification.
Even as it shared details of the scheme for accessing NDS-OM for execution of trades by demat account-holders, the RBI also said operational details of the scheme will be issued by the Clearing Corporation of India separately.
The guidelines will be effective from August 16, 2016.