NDS-OM Access for Stock Brokers: RBI Opens G-Sec Trading
Why in the news
RBI decided that non-bank brokers registered with SEBI can join the NDS-OM platform, a step to deepen retail participation and secondary-market liquidity in government securities.
Key facts
- NDS-OM: electronic, anonymous order matching system run by RBI for G-Sec secondary trading.
- Earlier users: banks, primary dealers, insurance companies, mutual funds.
- New entrants: SEBI-registered stock brokers.
- Settlement: brokers must partner with CCIL members.
- Linked to SEBI’s October 2024 proposal of a separate business unit for G-Sec trading.
Expected impact
| Area | Effect |
|---|---|
| Retail reach | Brokers can tap a large retail client base |
| Liquidity | More G-Secs become tradable, raising liquidity |
| Technology | Better if broker platforms connect to NDS-OM |
Exam angle
- Operator of NDS-OM: RBI.
- Settlement entity: Clearing Corporation of India Ltd.
- G-Sec = government security.