RBI has proposed new draft rules allowing retail investors to directly buy and sell government securities through digital platforms with investments starting from just ₹10,000
Key Highlights:
- RBI releases draft rules to simplify government bond investments.
- Retail investors can directly trade government securities via NDS-OM.
- Minimum investment starts at just ₹10,000.
- Multiple digital access channels introduced, including RBI Retail Direct.
- T+1 settlement to ensure faster and safer transactions.
- Draft aims to improve transparency and reduce dependence on intermediaries.
New Delhi, June 26: The Reserve Bank of India (RBI) has released draft master directions aimed at making investments in government securities (G-Secs) simpler and more accessible for retail investors. The proposed framework seeks to consolidate existing regulations while expanding digital access to India’s government bond market.
Under the draft guidelines, retail investors will be able to directly participate in the secondary market through the RBI’s Negotiated Dealing System-Order Matching (NDS-OM) platform. Investors can access the platform via the RBI Retail Direct Scheme, demat accounts maintained with banks acting as depository participants, or through SEBI-registered depositories using the Stock Broker Connect facility.
A key feature of the proposal is that investors holding demat accounts with banks that are direct members of the NDS-OM platform will be able to execute transactions without relying on intermediaries, making the investment process more efficient and cost-effective.
To encourage wider retail participation, the RBI has proposed a minimum investment threshold of just ₹10,000 in face value, with additional investments allowed in multiples of ₹10,000. Direct members will also be required to provide access to the NDS-OM web module for eligible gilt and demat account holders.
Trading on the platform will be available on working days between 9:00 AM and 5:00 PM, allowing investors to place orders based on either price or yield. The RBI believes that expanding digital access will improve participation in the government securities market while offering investors a secure fixed-income investment option.
The draft rules also strengthen transparency by requiring all over-the-counter (OTC) government securities transactions to be reported within 15 minutes of execution. Additionally, settlements will continue on a T+1 basis, ensuring that both funds and securities are transferred on the next working day, reducing settlement risk.
According to the RBI, the proposed framework will also simplify several existing regulations related to government securities, including rules governing short-selling and when-issued trading. The move is expected to modernize India’s government bond market, improve market efficiency, and make sovereign debt investments more accessible for individual investors.
