NSE Launches Online Platform For Retail Investors To Buy Government Securities
The National Stock Exchange of India launched a mobile application and web-based platform for retail investors to buy government securities. The new app—NSE goBID—was launched by the Securities and Exchange Board of India’s Chairman Ajay Tyagi.
The platform will allow retail investors to invest in treasury 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 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.Ajay Tyagi, Chairman, SEBI
He said compared to fixed deposit returns offered by banks, the government bonds are 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 percent.
He, however, said the participation of retail investors in 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 coordinate with exchanges to improve it further,” Tyagi said.
The app will be available to all the registered investors with the 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 using the unified payments interface and internet banking.
The Union Budget 2016-17 had announced that the Reserve Bank of India will facilitate retail participation in the primary market through stock exchanges.
The central bank conducts auction of government securities and treasury bills on a weekly basis where 5 percent of the notified amount is allotted for eligible investors under the scheme for non-competitive bidding facility.