RBI allows retail investors in G-sec primary market


Retail investors will have the opportunity to buy government bonds in the primary market, where the Reserve Bank of India sells new sovereign debt securities.

“Specified stock exchanges, in addition to scheduled banks and primary dealers (bond houses), will be permitted to act as aggregators/facilitators for retail investor bids in the non-competitive segment for the auction of dated securities and treasury bills of the Government of India,” RBI said in its bi-monthly policy statement.

The move is expected to widen the investor base by easing buy-sale transactions. The Central Government and the Reserve Bank have been taking various measures in the G-Sec market as a part of the overall strategy of diversifying the investor base, the central bank said.

 This is also in line with government's overall stance wherein it had announced in the Union Budget 2016-17that the RBI will facilitate retail participation in the primary and secondary markets through stock exchanges. RBI will issue final guidelines on the issue by end of October 2017.




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