Mumbai: Federal Reserve Bank of Asian country (RBI) has notified its retail direct scheme, underneath that retail participation will be inspired in government securities by providing costs and quotes to retail direct gilt (RDG) account holders, which is able to facilitate them in commercialism in securities.
The scheme had been launched by the prime minister on Nov 12, 2021, where retail investors have the ability to open a web RDG account with RBI.
These accounts can be coupled to their savings bank accounts. The RDG accounts of individuals can be wont to participate within the issuance of state securities and secondary market operations through the screen-based NDS-OM.
NDS-OM or Negotiated Dealing Segment– Order Matching, refers to the RBI screen-based, associate degreeonymous electronic order matching system for commercialism in government securities within the secondary market.
In this connection, to supply liquidity in the secondary market, a market creates an arrangement, whereby the primary dealers shall be a gift on the NDS-OM platform throughout market hours and reply to buy/sell requests from Retail Direct Gilt Account Holders (RDGAHs) has been notified.
In step with the market-making scheme, primary dealers can supposed the know Your client (KYC) verification of the RDG account holders done underneath the retail direct scheme.
“No more KYC verification is needed for transacting with RDG account holders on the request for quotes (RFQ) section of NDS-OM,” the RBI said. The RFQ segment refers to the on-screen negotiation system of the RBI’ NDS-OM system.