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

A retail investor wants to buy Government securities (G-Secs) in dematerialised form directly from the primary market through the RBI Retail Direct platform. Where are the securities credited after allotment?

Securities bought through the RBI Retail Direct platform are credited to the investor's Retail Direct Gilt account maintained with the RBI. The holding is electronic, so it is not physical, not a bank deposit and not permanently held by the clearing corporation.

  1. AIn the investor's Retail Direct Gilt (RDG) account maintained with the RBICorrect
  2. BIn a physical Subsidiary General Ledger form held by the broker
  3. CIn the investor's bank savings account as a deposit
  4. DIn the clearing corporation's pool account permanently

Explanation

Under the RBI Retail Direct scheme, retail investors open a Retail Direct Gilt account with the RBI, and G-Secs bought in the primary or secondary market are held in that account in electronic form. They are not held physically or in bank deposits. The clearing corporation only facilitates settlement and does not hold them permanently.

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