The Reserve Bank of India (RBI) said on February 5 that retail investors can directly participate in government securities.
Called, the RBI Direct, the scheme will let the retail investors have direct access to G-Sec market both in primary and secondary markets, governor Shaktikanta Das said, announcing the bi-monthly monetary policy.
“This will broaden the investor base and provide retail investors with enhanced access to participate in the government securities market. This is a major structural reform placing india among select few countries which have similar facilities,” the governor said, adding details will be announced later.
The Centre and the Reserve Bank have taken several measures to encourage retail investment in government securities. These include the introduction of non-competitive bidding in primary auctions, permitting stock exchanges to route primary purchases and allowing a specific retail segment in the secondary market, Das said.
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The central bank proposed to provide retail investors with online access to the government securities market—both primary and secondary—directly through the Reserve Bank, Das said.
The decision along with with HTM relaxation will facilitate smooth completion of the government borrowing programme in 2021- 22, Das added.
The RBI retained the key rates and said the stance with respect to monetary policy and liqudiity management would continue to be accommodative to support growth.Follow our LIVE coverage of the RBI MPC announcements here