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?
Show answer
Answer: B. Statement 1 is correct: retail investors can bid non-competitively for T-bills and government bonds in primary auctions through demat accounts via brokers and stock exchanges. Statement 2 is correct: NDS-OM is RBI's electronic platform for trading government securities. Statement 3 is wrong: CDSL was promoted by BSE along with banks such as SBI and Bank of India, not by RBI. So 1 and 2.
Watch for: RBI's role in G-sec trading makes students wrongly assume it also promoted CDSL.
Why the other options are wrong
- A. Wrong because statement 2 about NDS-OM is also correct.
- C. Wrong because RBI did not promote CDSL.
- D. Wrong because statement 3 is false.
Source to check: RBI website (NDS-OM, Retail participation in G-secs); CDSL website (About Us)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.