Correct Option
The correct option is (b) 1 and 2.
Explanation
The question pertains to the infrastructure and accessibility of the Indian Government Securities (G-Sec) market and the ownership structure of key financial institutions like Depositories. It tests knowledge regarding retail participation in sovereign debt and the operational platforms managed by the Reserve Bank of India (RBI).
Statement-wise Analysis
- Statement 1 is Correct.
Retail investors are permitted to invest in Treasury Bills (T-Bills) and Government of India Debt Bonds (G-Secs) in the primary market. This is facilitated through the Non-Competitive Bidding facility, where retail investors can place bids through aggregators (like stock exchanges) or directly via the RBI Retail Direct scheme. A demat account is typically used to hold these securities in electronic form.
- Statement 2 is Correct.
The Negotiated Dealing System-Order Matching (NDS-OM) is an electronic, screen-based, anonymous, order-driven trading platform for Government Securities. It is owned by the Reserve Bank of India (RBI) and operated by the Clearing Corporation of India Ltd. (CCIL). It facilitates both the primary issuance and secondary market trading of G-Secs.
- Statement 3 is Incorrect.
Central Depository Services Limited (CDSL) was promoted by the Bombay Stock Exchange (BSE) jointly with leading banks (such as SBI, Bank of India, Bank of Baroda, HDFC Bank, etc.). The Reserve Bank of India (RBI) is the regulator of the money market and banking system, but it is not a promoter of CDSL. Similarly, the other depository, NSDL, is promoted by NSE, IDBI, and UTI.
Key Takeaway
NDS-OM is the RBI-owned platform for G-Sec trading. CDSL is a depository promoted by BSE and banks, whereas NSDL is promoted by NSE and other financial institutions. Retail investors can access the primary G-Sec market via non-competitive bidding.