Q13 · UPSC Prelims 2021 · Set A · Economy

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With reference to India, consider the following statements:1.Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market.2.The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India.3.The 'Central Depository Services Ltd' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.Which of the statements given above is/are correct?

A 1 only
B 1 and 2
C 3 only
D 2 and 3

Correct answer: (b) 1 and 2

Explanation

  1. A

    1 only

    1 only. NDS-OM is also RBI’s G-sec matching platform.

  2. B

    1 and 2

    1 and 2. Retail demat access to T-bills/G-secs in the primary market (RBI Retail Direct / earlier routes) and NDS-OM as RBI’s platform. CDSL is a depository promoted by BSE and others, not RBI-plus-BSE as stated.

  3. C

    3 only

    3 only. Statement 3 is false.

  4. D

    2 and 3

    2 and 3. Statement 3 fails.

Summary. Official key is (b) 1 and 2. Retail investors can buy G-secs and T-bills in the primary market through demat/Retail Direct. NDS-OM is RBI’s negotiated dealing / order-matching system. CDSL is not an RBI–BSE joint as statement 3 claims.

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