January 04, 2022
All Primary Dealers
Dear Sir/Madam
RBI Retail Direct Scheme has been launched on November 12, 2021 for providing onestop access to facilitate investment in Government Securities by retail investors. In this connection, to provide liquidity in the secondary market, a market making arrangement, wherein the Primary Dealers shall be present on the NDS-OM platform (odd-lot and Request for Quotes segments) throughout market hours and respond to buy/sell requests from Retail Direct Gilt Account Holders (RDGAHs), is enclosed as Annex.
Yours faithfully
(Latha Vishwanath)
General Manager
Encl: as above
RBI Retail Direct Scheme – Market Making
In exercise of the powers conferred under Section 29(2) of the Government Securities Act 2006, the Reserve Bank of India, hereby, issues the following Market Making Scheme:
- 1. Objective of the Scheme
To promote retail participation in Government Securities by providing prices/quotes to Retail Direct Gilt (RDG) account holders enabling them to buy/sell securities under the RBI Retail Direct Scheme.
2. Definitions
In this scheme, unless the context otherwise requires:
a. “Government Securities”, for the purpose of this scheme, mean securities issued in form of stock by credit to SGL/CSGL account maintained with RBI as defined under Section 3(iii) of Government Securities Act, 2006;
b. “Liquid Securities” means a security identified and published by Fixed Income Money Market and Derivatives Association of India (FIMMDA)/ Financial Benchmarks India Limited (FBIL) as a ‘liquid security’ for the purpose of short
sale transactions.
c. “NDS-OM” or Negotiated Dealing Segment – Order Matching means RBI’s screen based, anonymous electronic order matching system for trading in Government Securities in the secondary market;
d. “Odd-lot segment” refers to the odd-lot segment of NDS-OM;
e. “Primary Dealers” means entities authorized by RBI to undertake primary dealership activities in Government Securities;
f. “Request for Quotes (RFQ) segment” refers to the on-screen negotiation system of RBI’s NDS-OM system;
g. “Retail Direct Gilt (RDG) Account” means gilt account maintained in the books of RBI under the Retail Direct Scheme;
h. “Retail Direct Scheme” refers to the RBI Retail Direct scheme formulated to facilitate investment in Government Securities by individual investors.
3. Applicable entities
All Primary Dealers.
To Read More….
Click the link below…..