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?
Correct Answer: Option B
Explanation
1. Statement 1 is correct. The Reserve Bank of India (RBI) launched the 'RBI Retail Direct' scheme, allowing retail investors to open a gilt securities account directly with the RBI. Through this account (similar in function to a demat account for this purpose), they can invest in Treasury Bills (T-Bills) and Government of India Debt Bonds (G-Secs) in the primary market (auctions) as well as the secondary market.
2. Statement 2 is correct. The Negotiated Dealing System-Order Matching (NDS-OM) is an electronic, screen-based, anonymous order matching system for trading in government securities, owned and operated by the Reserve Bank of India (RBI).
3. Statement 3 is incorrect. The Central Depository Services Ltd. (CDSL) was initially promoted by the Bombay Stock Exchange (BSE), with later participation from major banks like State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, etc. The Reserve Bank of India (RBI) was not a promoter of CDSL.
Hence, statements 1 and 2 are correct.
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