Mumbai: In its first bi-monthly monetary policy statement 2015-16, the Reserve Bank of India (RBI) on Tuesday said that retail individual investors would be provided direct access to both primary and secondary market platforms without any intermediary to invest in government securities (G-Sec). The Reserve Bank said that it would explore the creation of alternate channels of distribution (e-distribution channels) for investment in G-secs. Currently, an investor has to open a Subsidiary General Ledger (SGL) with one of the banks or primary dealers to make investment in G-secs.
It takes a minimum of four to seven days for the movement of securities from SGL form to demat form. “The idea is to link the stock exchange platform with Negotiated Dealing System-Order Matching, which will help bring down the conversion time and enable a smoother access to the G-sec market,” said Ajay Manglunia, head of fixed income, Edelweiss Financial Services.
The RBI noted that it has been in consultation with all stakeholders to enable seamless movement of securities from the subsidiary general ledger form to demat form etc.
