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Prime Minister Narendra Modi had launched the RBI Retail Direct Scheme launched on November 12, 2021, to offer one-stop entry to facilitate funding in authorities securities by retail buyers.
On this connection, to offer liquidity within the secondary market, a market making association, whereby the first sellers shall be current on the NDS-OM platform (odd-lot and Request for Quotes segments) all through market hours and reply to purchase/promote requests from Retail Direct Gilt Account Holders (RDGAHs) has been notified.
In response to the market making scheme, main sellers will depend on the Know Your Buyer (KYC) verification of the RDG account holders carried out underneath the retail direct scheme.
“No additional KYC verification is required for transacting with RDG account holders on the RFQ phase of NDS-OM,” the RBI stated.
‘NDS-OM’, or Negotiated Dealing Phase- Order Matching, refers back to the RBI’s screen-based, nameless digital order matching system for buying and selling in authorities securities within the secondary market.
The ‘Request for Quotes (RFQ) phase’ refers back to the on-screen negotiation system of the RBI’s NDS-OM system.
Beneath the RBI Retail Direct Scheme, retail buyers (people) have the power to open a web-based Retail Direct Gilt Account (RDG Account) with RBI. These accounts may be linked to their financial savings financial institution accounts.
The RDG Accounts of people can be utilized to take part within the issuance of presidency securities and secondary market operations via the screen-based NDS-OM.
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