Q. 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? (UPSC Prelims 2021)
Answer: 1 and 2
Notes: The correct answer is [B] 1 and 2. This question tests knowledge of the Indian financial market infrastructure and recent reforms aimed at increasing retail participation in government securities.

• Retail Participation (Statement 1 – Correct): Under the RBI Retail Direct Scheme launched in 2021, retail investors can open a "Retail Direct Gilt Account" (RDG Account) to directly invest in Treasury Bills (T-Bills), Government of India Dated Securities (G-Secs), and Sovereign Gold Bonds (SGBs) in both the primary and secondary markets.
• NDS-OM Platform (Statement 2 – Correct): The Negotiated Dealing System-Order Matching (NDS-OM) is an anonymous, screen-based electronic order matching system for trading in Government Securities. It is owned by the RBI and operated by the Clearing Corporation of India Limited (CCIL) on behalf of the RBI.
• Central Depository Services Ltd (Statement 3 – Incorrect): CDSL was promoted by the Bombay Stock Exchange (BSE) in association with leading banks like SBI, Bank of India, and HDFC Bank. The RBI is a regulator and does not promote commercial depositories like CDSL or NSDL.

Historically, the G-Sec market was dominated by institutional players like banks and insurance companies. The opening of the NDS-OM retail segment marked a significant shift toward democratizing access to sovereign debt.