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?

[UPSC Civil Services Exam – 2021 Prelims]

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 2 and 3 only


Answer: (b)        

Explanation:

  • The Reserve Bank of India (RBI) has recently announced a structural reform that allows retail investors to directly invest in the government’s primary and secondary bond market. This reform aims to deepen the bond market in India.
  • To facilitate this, the RBI introduced the Negotiated Dealing System-Order Matching (NDS-OM) in August 2005.
  • NDS-OM is an anonymous screen-based order matching module that enables participants to trade bonds by placing or accepting orders on the system.
  • Under this reform, retail investors can access the NDS-OM through their Demat accounts with depositories such as NSDL and/or CDSL.
  • They can use their Demat accounts to carry out transactions and hold Government Securities (G-Secs).
  • Retail investors can access the G-Sec market through existing NDS-OM primary members who also serve as Depository Participants for NSDL and/or CDSL.
  • The objective of this scheme is to provide retail individual investors with efficient and seamless access to the same G-Sec market that large institutional investors utilize.
  • This reform is expected to contribute to the development and expansion of the bond market in India.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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