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

A retail investor with a demat account wants to buy G-Secs through the RBI Retail Direct platform. Which statement is correct?

On RBI Retail Direct, an individual investor opens a Retail Direct Gilt account with RBI and holds G-Secs there. It gives access to primary auctions and the secondary market without needing a broker's demat account.

  1. AThe investor must open a Retail Direct Gilt (RDG) account with RBI, and securities are held there rather than in the broker's demat accountCorrect
  2. BThe investor can only participate through a broker's demat account
  3. COnly non-resident investors may use the platform
  4. DThe platform allows investment only in corporate bonds

Explanation

Under the RBI Retail Direct scheme, individual investors open a Retail Direct Gilt account directly with RBI, which gives access to primary auctions and the secondary market for G-Secs. It is not restricted to brokers, NRIs or corporate bonds.

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