RBI allows retail investors in G-sec primary market
, ET Bureau|
Oct 04, 2017, 03.18 PM IST
Retail investors will now have the opportunity to buy government bonds in the primary market, where the Reserve Bank of India sells new sovereign debt securities.
“Specified stock exchanges, in addition to scheduled banks and primary dealers (bond houses), will be permitted to act as aggregators/facilitators for retail investor bids in the non-competitive segment for the auction of dated securities and treasury bills of the Government of India,” RBI said in its bi-monthly policy statement.
The move is expected to broaden the investor base easing buy-sale transactions.
The Central Government and the Reserve Bank have been taking various measures in the G-Sec market as a part of the overall strategy of diversifying the investor base, the central bank said.
In line with this overall stance, the Union Budget 2016-17 announced that the Reserve Bank will facilitate retail participation in the primary and secondary markets through stock exchanges.
RBI will issue final guidelines by end-October 2017.
“Specified stock exchanges, in addition to scheduled banks and primary dealers (bond houses), will be permitted to act as aggregators/facilitators for retail investor bids in the non-competitive segment for the auction of dated securities and treasury bills of the Government of India,” RBI said in its bi-monthly policy statement.
The move is expected to broaden the investor base easing buy-sale transactions.
The Central Government and the Reserve Bank have been taking various measures in the G-Sec market as a part of the overall strategy of diversifying the investor base, the central bank said.
In line with this overall stance, the Union Budget 2016-17 announced that the Reserve Bank will facilitate retail participation in the primary and secondary markets through stock exchanges.
RBI will issue final guidelines by end-October 2017.
