Categories: Money Market

NDS-OM: Negotiated Dealing System

The Negotiated Dealing System (NDS) is a facilitator platform for the purchase and sale of Government securities. The members who maintain their Subsidiary General Ledger (SGL) and or Current Account with RBI can participate in the auctions using this platform. Participants are primary dealers, commercial banks, and a few Financial Institutions who are permitted to open and maintain Gilt Accounts for their constituents. These bids for the purchase of government securities can be made when the RBI conducts auctions for them through an electronic platform. Retail investors now 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.

The NDS auction process takes place one for the primary market and the other for the secondary market. In the secondary market (the market for trading the already issued G-Secs), the NDS facilitates the settlement of transactions in G-Secs. In the secondary market, NDS provides an interface to the Public Debt Office, RBI – Mumbai for the settlement of transactions.

NDS-OM

RBI launched the Negotiated Dealing System-Order Matching system (NDS-OM) in 2005 to enhance secondary market activity in the G-Sec segment. The NDS-OM is a screen-based electronic anonymous order matching system for secondary market trading in Government securities. Presently, NDS-OM accounts for over 75% of all secondary market dealing in Government Securities (GSecs). This is an order-driven electronic system, where the participants can trade anonymously by placing their orders on the system or accepting the orders already placed by other participants. The Clearing Corporation of India on behalf of the RBI operates the NDS-OM. Click  WHAT IS NDS-OM WEB

Related articles: Now individuals can directly invest in G-securities with RBI. Read the following post for details.

Surendra Naik

Share
Published by
Surendra Naik

Recent Posts

Distinction between Capital Receipt and Revenue Receipts

There are two different types of receipts that a business or a government generates during…

10 hours ago

Govt. revises norms for Dividend payout, Bonus Shares, Stock split, and Share buybacks

The Department of Investment and Public Asset Management (DIPAM) released new guidelines amending its earlier2016…

13 hours ago

Bank Holidays 2025: National Capital Territory Delhi

The Government of the National Capital Territory of Delhi has released the official list of…

1 day ago

Bank Holidays 2025: State of Rajasthan

The Government of Rajasthan in their Order No.16 (1).v.m./2024 dated 19.11.2024 declared bank Holidays under…

1 day ago

Distinguishing Capital expenditure and Revenue expenditure

Meaning of Expenditure and Expenses: Expenditure refers to the total amount spent to acquire goods…

2 days ago

Bank Holidays 2025: Gujarat State

In pursuance of the explanation in section 25 of NI Act 1881, read with the…

2 days ago