With reference to India, consider the following statements:
1. Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market.
2. The ‘Negotiated Dealing System- Order Matching’ is a government securities trading platform of the Reserve Bank of India.
3. The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
Which of the statements given above is/are correct?
Correct Answer :
1 and 2 only
Solution :
Correct Answer: 1 and 2 only
Let us analyze each statement step-by-step to determine which of them are correct:
1. Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market:
This statement is correct. Under the Reserve Bank of India's (RBI) 'Retail Direct' scheme, individual retail investors can open a Retail Direct G-Sec (RDG) Account or utilize specified demat portals to directly participate and invest in Government Securities (G-Secs), including Treasury Bills (T-Bills) and Government of India Debt Bonds in the primary market.
2. The ‘Negotiated Dealing System- Order Matching’ is a government securities trading platform of the Reserve Bank of India:
This statement is correct. The Negotiated Dealing System-Order Matching (NDS-OM) is an anonymous electronic order matching system for trading in Government Securities. It was introduced by the Reserve Bank of India (RBI) in August 2005 and is operated by the Clearing Corporation of India Limited (CCIL) on behalf of the RBI.
3. The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange:
This statement is incorrect. Central Depository Services (India) Limited (CDSL) was promoted by the Bombay Stock Exchange (BSE) jointly with leading banks such as State Bank of India (SBI), Bank of India, Bank of Baroda, HDFC Bank, and Standard Chartered Bank. The Reserve Bank of India (RBI) is not a promoter of CDSL.
Therefore, statements 1 and 2 are correct, making 1 and 2 only the correct answer.
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