Apedia Logo Apedia
Join

Choose Language

Select your preferred reading language
🇬🇧
English
✔
🇮🇳
हिन्दी
✔
✕
Full View
Economy
Financial Markets
EN हिंदी
✕
UPSC Prelims 2021 Paper-1 📅 10 Oct, 2021

With reference to India, consider the following statements:
1. Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market.
2. The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India.
3. The 'Central Depository Services Ltd.' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.

Which of the statements given above is/are correct?

A
1 only
B
1 and 2
C
3 only
D
2 and 3
Result Summary
Logo

APEDIA

UPSC Prelims
2021 • 10 Oct, 2021 • Paper-1
With reference to India, consider the following statements:
1. Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market.
2. The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India.
3. The 'Central Depository Services Ltd.' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.

Which of the statements given above is/are correct?
Correct Answer
1 and 2
Retail Participation: The RBI has implemented the "Retail Direct" scheme, allowing retail investors to open Retail Direct Gilt (RDG) accounts to invest seamless......
Ref/Book : UPSC Prelims 2021
Ref. Subject Economy
Chapter -
Ref. Topic Financial Markets
Pg. No -
💡 Analysis & Explanation
Retail Participation ▼
The RBI has implemented the "Retail Direct" scheme, allowing retail investors to open Retail Direct Gilt (RDG) accounts to invest seamlessly in Government Securities, including Treasury Bills and Debt Bonds, directly in the primary market. Thus, statement 1 is true.
Trading Infrastructure ▼
The Negotiated Dealing System-Order Matching (NDS-OM) is an electronic, screen-based, anonymous trading platform expressly owned and operated by the RBI to facilitate secondary market trading of government securities. Hence, statement 2 is correct.
Depository Ownership ▼
The Central Depository Services Ltd. (CDSL) was primarily promoted by the Bombay Stock Exchange (BSE) in association with leading commercial banks, not the Reserve Bank of India. Therefore, statement 3 is incorrect.
Conclusion ▼
Statements 1 and 2 present the correct information regarding market mechanisms.
← Prev
13 / 100
Next →