November 12, 2021<\/p>\n
All Scheduled Commercial Banks
\nAll State Co-operative Banks \/ All Scheduled Primary
\n(Urban) Co-operative Banks \/ All Financial Institutions \/
\nAll Primary Dealers\/All stock exchanges\/
\nClearing Corporation of India Ltd<\/p>\n
Madam\/ Dear Sir,<\/p>\n
As part of continuing efforts to increase retail participation in government securities, the \u2018RBI Retail Direct\u2019 Scheme to facilitate investment in Government Securities by individual investors was introduced today. Under the scheme, Clearing Corporation of India Limited (CCIL) has been permitted to aggregate the bids received from \u2018Retail investor\u2019 in non-competitive segment of primary auctions of Government Securities and Treasury Bills.<\/p>\n
2. Accordingly, the updated Scheme for Non-Competitive Bidding Facility in the auctions of Government Securities and Treasury Bills is given in Annex.<\/p>\n
<\/p>\n
Yours faithfully,<\/p>\n
(Rajendra Kumar)
\nChief General Manager<\/p>\n
<\/p>\n
Scheme for Non-Competitive Bidding Facility in the auction of<\/strong> <\/p>\n I.<\/strong> Scope: With a view to encouraging wider participation and retail holding of Government securities, retail investors are allowed participation on \u201cnoncompetitive\u201d basis in select auctions of dated Government of India (GoI) securities and Treasury Bills.<\/p>\n II.<\/strong> Definitions: For the purpose of this scheme, the terms shall bear the meaning assigned to them as under:<\/p>\n a. Retail investor is any person, including individuals, firms, companies, corporate bodies, institutions, provident funds, trusts, and any other entity as may be prescribed by RBI.<\/p>\n b. \u2018Aggregator\/Facilitator\u2019 means a Scheduled Bank or Primary Dealer or Specified Stock Exchange or any other entity approved by RBI, permitted to aggregate the bids received from the investors and submit a single bid in the non-competitive segment of the primary auction.<\/p>\n c. \u2018Specified stock exchange\u2019 means SEBI recognised Stock Exchange, which have received No Objection Certificate (NOC) from SEBI to act as d. \u2018Eligible Provident Funds\u2019 are those non-government provident funds governed by the Provident Funds Act 1925 and Employees\u2019 Provident Fund and Misc. Provisions Act, 1952 whose investment pattern is decided by the Government of India.<\/p>\n III.<\/strong> Eligibility: <\/p>\n
\nGovernment of India Dated Securities and Treasury Bills<\/strong><\/p>\n
\naggregator\/facilitator in the primary auction segment.<\/p>\n
\n(A) Participation on a non-competitive basis in the auctions will be open to a retail investor who:
\n1. does not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the Reserve Bank of India; and
\n2. Submits the bid indirectly through an Aggregator\/Facilitator permitted under the scheme; or
\n3. maintains the \u2018Retail Direct Gilt Account\u2019 (RDG Account) with RBI<\/p>\n