UPSC CSE Prelims
Question 99
With reference to India, consider the following statements:
- Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market.
- The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India.
- The 'Central Depository Services Ltd.' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
Which of the statements given above is/are correct?
View correct answer and explanation
Correct answer: B
Correct Option: B (1 and 2)
Explanation: Retail investors can access primary government securities through recognised mechanisms, and NDS-OM is RBI’s order-matching government-securities platform. CDSL was promoted by BSE and banks, not RBI jointly with BSE.
Statement / Pair / Item-wise Analysis:
1. Correct / qualifies - Retail investors may access Treasury Bills and dated government securities via designated retail arrangements.
2. Correct / qualifies - RBI operates the NDS–Order Matching trading system for government securities.
3. Incorrect / does not qualify - CDSL was promoted by BSE with leading financial institutions, not jointly by RBI and BSE.
Option-wise Analysis:
A. Incorrect-omits valid item 2 (RBI operates the NDS–Order Matching trading system for government securities).
B. Correct-selects exactly the supported statements/items: 1, 2.
C. Incorrect-includes item 3, which is not valid (CDSL was promoted by BSE with leading financial institutions, not jointly by RBI and BSE); omits valid item 1 (Retail investors may access Treasury Bills and dated government securities via designated retail arrangements); omits valid item 2 (RBI operates the NDS–Order Matching trading system for government securities).
D. Incorrect-includes item 3, which is not valid (CDSL was promoted by BSE with leading financial institutions, not jointly by RBI and BSE); omits valid item 1 (Retail investors may access Treasury Bills and dated government securities via designated retail arrangements).
Review note: Retail-direct/demat pathways and eligibility have changed over time; the statement is treated as of 2021.