NSDL integrates its system with CCIL for trading in government securities by Demat Accountholders
This follows the announcement by RBI in the First Bi-monthly Monetary Policy Statement of 2015-16 to provide demat account holders the functionality to put through trades on NDS-OM.
In July 2016, the RBI issued guidelines to allow Demat account holders 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.
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),” said Rao.
This facility has been made operational with effect from Tuesday.
The first trade for a retail client was executed by HDFC Bank, a Bank Depository Participant of NSDL and NDS-OM member.
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