Sebi Proposes New Access Route for Retail Participation in Government Securities

Sebi has announced a proposal allowing registered stock brokers to trade government securities via an electronic platform managed by RBI. A separate business unit will handle this activity, ensuring clear segregation from brokers' usual functions. The proposal seeks public input by October 25.

In a bid to enhance retail participation in government securities, Sebi has proposed allowing registered stock brokers to trade these securities through a specialized electronic system handled by the Reserve Bank of India.

The regulatory authority's consultation paper suggests that brokers manage this trading through a separate business unit, distinct from their regular operations. This segregation aims to ensure focused management and risk handling.

Securities trading via this platform, known as negotiated dealing system-order matching, will facilitate retail access while incorporating necessary safeguards and oversight.