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?
Explanation
Statement 1 is correct: Through initiatives like the RBI Retail Direct scheme as well as stock exchange platforms (BSE/NSE), retail individuals holding a demat account can directly place non-competitive bids in the primary auctions of Treasury Bills (T-Bills) and Government of India dated securities.
Statement 2 is correct: The Negotiated Dealing System-Order Matching (NDS-OM) is an electronic, screen-based, anonymous order-driven trading platform owned and operated by the Reserve Bank of India for trading in government securities and money market instruments.
Statement 3 is incorrect: Central Depository Services (India) Limited (CDSL) was initially promoted by the Bombay Stock Exchange (BSE) along with leading public and private sector banks (SBI, Bank of India, Bank of Baroda, HDFC Bank, etc.). The Reserve Bank of India is NOT a promoter of CDSL.
Hence, statements 1 and 2 are correct — Option B.