BSE To Launch Platform For Retail Trade Of Government Securities
The Bombay Stock Exchange will launch an online bidding platform for retail investors in non-competitive bidding of government securities and treasury bills from Monday.
“BSE to launch ‘BSE-Direct’ for retail investors in non-competitive bidding of G-sec and T-bills from Dec. 03, 2018,” the exchange said in a release. Bidding for G-sec and T-bills will end on T-1 day (a day before the auction date) at 5 pm, it added.
BSE-Direct platform will offer easy access to participants and will certainly act as an efficient mechanism for delivering government securities to retail clientAshishkumar Chauhan, MD and CEO, BSE
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 in January 2002.
The RBI conducts auction for G-Sec and T-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.
Investments in government securities are one of the safer investment options available to retail investors as these are risk-free instruments, provide portfolio diversification and are available for longer investment durations.