The Reserve Bank of India (RBI) has issued a release announcing that it will allow non-bank brokers registered with the Securities and Exchange Board of India (SEBI) to access the negotiated dealing system-order matching (NDS-OM) platform, which is an anonymous system for trading government securities (G-Secs) in the secondary market.
“The RBI will expand access to the NDS-OM platform, the electronic trading platform for secondary market transactions in government securities, to non-bank brokers registered with the SEBI in order to enhance access for retail investors,” RBI Governor Sanjay Malhotra said, according to the release.
The RBI move is intended to expand retail participation in the government bond market.
Earlier in October 2024, the SEBI had proposed a consultation paper outlining a framework where stock brokers could engage in trading of G-Secs through a separate business unit.
Access to the NDS-OM system is expected to boost retail participation since stock brokers serve a large number of retail clients.