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NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Debt Instruments and Government Securities

A retail investor in Pune wants to hold Treasury Bills issued by the Government of India in electronic form without opening a separate Subsidiary General Ledger account. Which facility allows this?

The investor can hold Treasury Bills electronically through a demat account with a depository participant, which lets retail holders keep government securities in dematerialised form without needing their own SGL account with the RBI.

  1. AOpening a Constituent SGL account through a demat account with a depository participantCorrect
  2. BHolding the bills in physical scrip form with the investor's bank
  3. CBuying them only through a stock exchange's futures segment
  4. DRegistering them with the company registrar as shares

Explanation

Government securities can be held in dematerialised form in a demat account with a DP, which acts as a gateway to the RBI's Public Debt Office records. Physical holding, futures trading and registrar registration of shares are not the mechanism for holding G-Secs electronically.

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