NSDL launches facility for retail trade in G-secs

Mumbai, Aug 16 (PTI) To encourage retail investmentsin government securities (G-secs), National SecuritiesDepository Ltd (NSDL) has initiated a facility for individualaccount holders to trade in such financial instruments. The facility allows retail investors holding demataccounts with bank depository participants of NSDL to deal inG-secs through the negotiated dealing system–order matching(NDS-OM) platform, operated by Clearing Corporation of India(CCIL) on behalf of Reserve Bank of India (RBI). This facility was made operational today and the firsttrade for a retail client was executed by HDFC Bank, a bankdepository participant of NSDL and also NDS-OM member. The move is in line with announcement by RBI in itsfirst bi-monthly monetary policy statement of 2015-16 toprovide demat (dematerialised) account holders thefunctionality to put through trades on NDS-OM. In July 2016, RBI had issued guidelines to allow demataccount holders to put through trades in G-secs on the NDS-OMplatform through their bank depository participant (DP) whichis a subsidiary general ledger (SGL) account holder and adirect member of NDS-OM and CCIL. So far, access for trading in secondary market on NDS-OM was limited to those maintaining SGL/constituents’subsidiary general ledger (CSGL) accounts. "These new guidelines will now facilitate efficientaccess for retail investors holding demat accounts to theGovernment securities market and encourage retailparticipation," NSDL said in a statement. Further, the depository said it has integrated NDS-OMweb module with e-services facility to make the processeasier for retail investors. "It allows the bank DPs to make available web tradingfacility to investors so that investors can directly tradeonline in government securities using the web module of NDS-OMand their existing NSDL demat account." NSDL Managing Director and CEO G V Nageswara Rao said,"This facility will encourage retail investors to invest inGovernment securities. "NDS-OM is the most liquid market for Governmentsecurities and NSDL demat account holders now have access tothe same. There is no need for investors to open separatedemat account for holding government securities and theirexisting demat account can be used." He said that investors would be able to view and trackG-secs through NSDL’s consolidated account statement. NSDL holds over 89 per cent of the demat securitiesheld in the country. It holds securities worth over Rs 130lakh crore (USD 1.9 trillion), which is larger than GDP of180 countries, NSDL said. Central Depository Services Ltd (CDSL) is the otherdepository in India. PTI SSM RSY JM MRBAS