Brief Overview:
Both RBI & SEBI has announced, trading in G-Secs directly by SEBI-registered non-bank stock brokers by expanding access to Negotiated Dealing System–Order Matching (NDS-OM) platform.
Technical Details:
The revised RBI Direction has introduced ‘Stock Broker Connect’ route to access NDS-OM that allows individual investors access through SEBI-registered stock brokers having agreement with CCIL members.
SEBI has also mandated strict safeguards including:
1) Separate Business Unit (SBU) for NDS-OM activities.
2) Ring-fencing from other securities operations.
3) Segregated net worth from the stock broker.
4) Exclusions from investor protection mechanisms including access to investor protection fund.
JC takeaway:
This regulatory shift is expected to deepen the G-Secs market by possibly increasing liquidity and encouraging retail participation in the G-Secs space.
For further details, please see:
RBI (Access Criteria for NDS-OM) Directions, 2025
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