Q. 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?

[A] 1 only

[B] 1 and 2

[C] 3 only

[D] 2 and 3

Answer: B

Why this Question) RBI Retail Direct Scheme introduced recently for retail investors. 

Ans) b 

Exp) Option b is correct. 

Statement 1 is correct. Retail investors have multiple channels to invest in treasury bills (T-Bills) and Government bonds. It is mandatory to open demat account for a retail investor to invest in Treasury Bills and Government of India Debt Bonds in primary market. 

Statement 2 is correct. The Negotiated Dealing System Order Matching is an electronic trading platform operated by theReserve Bank of Indiato facilitate the issuing and exchange of government securities and other types of money market instruments. 

Statement 3 is incorrect. CDSL was promoted byBSE Ltd. jointly with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank and Union Bank of India. 

Reserve Bank of India is not its promoter. 

Source: How to Invest in G-Sec (nseindia.com) 

Explained: Heres what to consider before investing directly in govt securities | Explained News,The Indian Express 

Negotiated Dealing System (NDS) (investopedia.com) 


Subject) Economics