More Stories

Informist, Friday, Feb. 7, 2025

--RBI Malhotra: SEBI-registered brokers can participate on NDS-OM platform 

MUMBAI – The Reserve Bank of India announced Friday that it plans to expand access to the Negotiated Dealing System - Order Matching platform for non-bank brokers registered with the Securities and Exchange Board of India. This follows a suggestion by SEBI in October to allow registered stockbrokers to trade in government securities through NDS-OM, which would help boost retail participation. 

"To enhance access of retail investors to government securities, the Reserve Bank shall expand the access of NDS-OM, the electronic trading platform for secondary market transactions in government securities, to non-bank brokers registered with SEBI," RBI Governor Sanjay Malhotra said in his statement following the Monetary Policy Committee's sixth bi-monthly meeting for 2024-25 (Apr-Mar). The RBI stated that it will issue the necessary circulars and directions to implement this decision later.

NDS-OM is a screen-based, electronic, anonymous order matching system designed for secondary market trading in government securities that are owned by the central bank. The platform is owned by the RBI and is managed by the Clearing Corp. of India Ltd. Current membership is limited to entities such as banks, insurers and non-banking financial companies, among others.

In the October circular, SEBI said brokers could offer government securities trading under a separate business unit. 

The move is aimed at enhancing retail investor access to government securities. It is expected to be a positive step for increasing retail participation in government securities, which are considered a safer alternative to fixed deposits. Allowing stockbrokers to facilitate such trades could also provide brokers with an additional revenue stream, diversifying their offerings. It is also expected to improve liquidity in the market and provide a more direct investment avenue for retail investors.  End

Reported by Sachi Pandey

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.