UPSC Prelims 2021 · Question 13 of 97
UPSC Prelims 2021 question on Retail Investors Government Securities
- ExamUPSC CSE
- Year2021
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicSecurity Market in India
- DifficultyHard
- TypeStatement
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. 1 and 2
Verdict
Correct statements: 1 and 2 → Option (b).
Statement by statement
Statement 1 — CORRECT: In February 2021, RBI allowed retail investors to directly purchase government bonds by opening gilt accounts with RBI through the RBI Retail Direct scheme. Retail investors can also purchase government bonds by registering themselves on stock exchanges for non-competitive bids, and via gilt mutual funds.
Statement 2 — CORRECT: The Negotiated Dealing System-Order Matching (NDS-OM) is a screen-based electronic anonymous order-matching system for secondary-market trading in Government securities owned by RBI. Membership is open to entities like Banks, Primary Dealers, Insurance Companies, Mutual Funds, etc. (entities maintaining SGL accounts with RBI).
Statement 3 — INCORRECT: Central Depository Services Ltd (CDSL) was promoted by BSE 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 — NOT jointly with the Reserve Bank of India.