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PTI mumbai India
Updated: 19-11-2018 13:56 IST

National Stock Exchange of India

(NSE) Monday launched a mobile application and web-based

platform for retail investors to buy government securities.

The new app - NSE goBID, was launched by Sebi chairman

Ajay Tyagi.

The platform will allow retail investors to invest in

treasury bills (T-Bills) of 91 days, 182 days and 364 days and

various government bonds from one year to almost 40 years.

"The launch of the app for investing in government

securities is an important milestone at a time when the

country is seeing a surge in digital payments. The retail

participation in government securities only started after Sebi

allowed exchanges to set up non-competitive bidding platforms

by exchanges," Tyagi said.

He said compared to fixed deposit returns offered by

banks, the government bonds are currently offering better

yields, and retail investors should get the opportunity to

earn higher returns.

The 10-year government bond yield is trading at

7.80-7.83 per cent.

He, however, said the participation of retail

investors in the government securities has been low, so far,

and there is a need to increase it through publicising

such platforms.

"We, on a regular basis, will review the progress (of

such platforms) and will try to co-ordinate with exchanges

to improve it further," Tyagi said.

The app will be available to all the registered

investors with NSE's trading members and will also facilitate

members to acquire new retail investors.

It will allow investors to make payments directly from

their bank accounts usingthe unified payments interface (UPI)

and internet banking.

The Union Budget 2016-17 had announced that RBI will

facilitate retail participation in the primary markets through

stock exchanges.

RBI conducts auction of G-sec and T-bills on a weekly

basis where 5 per cent of the notified amount is allotted for

eligible investors under the scheme for non-competitive

bidding facility.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)