Sebi-registered non-bank brokers can directly access NDS-OM, says RBI

The RBI on Friday said non-bank brokers registered with market-regulator Sebi can directly access NDS-OM, an electronic trading platform for secondary market transactions in government securities, on behalf of their clients.

Access to Negotiated Dealing System Order Matching (NDS-OM), at present is available to regulated entities and to the clients of banks and standalone primary dealers.

"With a view to widening access, it has been decided that non-bank brokers registered with Sebi can directly access NDS-OM, on behalf of their clients," the Reserve Bank of India (RBI) said.

Sebi registered brokers may access NDS-OM subject to the regulations and conditions laid down by the Reserve Bank in this regard.

Meanwhile, the RBI announced the setting up of a nine-member working group on 'Comprehensive review of trading and settlement timings of markets regulated by the Reserve Bank'.

The panel, headed by RBI Executive Director Radha Shyam Ratho, will undertake a comprehensive review of trading and settlement timing of financial markets regulated by the Reserve Bank.

The group is expected to submit its report by April 30, 2025.

RBI said synchronised and complimentary market and settlement timings across various financial market segments can facilitate benefits of efficient price discovery and optimisation of the liquidity requirements.

It will also examine the implications, including benefits, costs and challenges, if any, in revising the current timings for trading and settlement.

Over the last few years, there have been several developments including increased electronification of trading, availability of forex and certain interest rate derivative markets on a 24X5 basis, increased participation of non-residents in domestic financial markets and availability of payment systems on a 24X7 basis, it said.

The panel will identify the frictions and challenges in the overall functioning of markets with regard to trading time and settlement.