BSE to launch online bidding platform for retail investor
"BSE to launch 'BSE-Direct' for retail investors in non-competitive bidding of G-sec and T-bills from December 03, 2018," the exchange said in a Friday release.
"BSE-Direct platform will offer easy access to participants and will certainly act as an efficient mechanism for delivering government securities to a retail client," said BSE MD and chief executive Ashishkumar Chauhan.
Under the non-competitive bidding scheme, eligible investors apply for a certain amount of securities in an auction without mentioning the price or yield. The scheme was introduced by the Reserve Bank of India (RBI) in January 2002.
The RBI conducts an auction for 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.
Investments in government securities are one of the safer investment options available to retail investors as these are risk-free instruments and provide portfolio diversification and are available for longer investment durations.
(With inputs from agencies.)