Mumbai, August 16, 2016: National Securities Depository Ltd (NSDL) is pleased to announce introduction of facility for Retail Investors holding Demat Accounts with NSDL to trade in Government Securities on the Negotiated Dealing System–Order Matching (NDS-OM) platform, which is operated by Clearing Corporation of India Ltd (CCIL) on behalf of Reserve Bank of India (RBI).
This follows the announcement by RBI in the First Bi-monthly Monetary Policy Statement of 2015-16 to provide demat accountholders the functionality to put through trades on NDS-OM. In July 2016, RBI issued guidelines to allow Demat Accountholders to put through trades in Government Securities on the NDS-OM platform through their Bank Depository Participant (DP) which is an SGL Account Holder and a direct member of NDS-OM and CCIL.
With this, retail individual investors holding Demat Accounts with Bank DPs of NSDL will be able to purchase or sell government securities through the NDS-OM system. So far, access for trading in secondary market on NDS-OM was limited to only those maintaining SGL/CSGL accounts. These new guidelines will now facilitate efficient access for retail investors holding demat accounts to the government securities market and encourage retail participation.
To make it easier for retail investors to trade, NSDL has also integrated NDS-OM web module with its e-services facility. It allows the Bank DPs to make available web trading facility to investors so that investors can directly trade online in government securities using the web module of NDS-OM and their existing NSDL demat account.
Mr. G V Nageswara Rao, MD & CEO, NSDL said that “this facility will encourage retail investors to invest in government securities. NDS-OM is the most liquid market for government securities and NSDL demat accountholders now have access to the same. There is no need for investors to open separate demat account for holding government securities and their existing demat account can be used. What’s more, such investors will be able to view and track government securities through NSDL’s Consolidated Account Statement (CAS).”
This facility has been made operational with effect from August 16, 2016. The first trade for a retail client was executed by HDFC Bank, a Bank Depository Participant of NSDL and NDS-OM member.
National Securities Depository Limited (NSDL), India’s largest depository, holds more than 89% of the demat securities held in India. NSDL holds securities valued at more than Rs. 130 lakh crore (USD 1.9 trillion) which is larger than GDP of 180 countries around the world. NSDL has established a national infrastructure of international standards that settles over 89% of value of securities traded and settled on Indian stock exchanges. NSDL services more than 1.48 crore demat account holders through its Participants from about 27,000 locations. NSDL covers 89% of PIN codes in the country and has presence in all States and Union Territories.