Reserve Bank on Wednesday said it implemented its web-based online bidding in primary auctions of government securities.
Mumbai: Reserve Bank on Wednesday said it implemented its web-based online bidding in primary auctions of government securities.
The module on web-based negotiated dealing system auction will allow internet-based direct participation of gilt account holders.
"The module permits internet-based direct participation of gilt account holders (GAHs) in primary auctions of government securities (G-Secs)", the RBI said in a notification.
'Gilt account' is used by the RBI to refer to a constituent account maintained by a custodian bank for maintenance and servicing of dematerialised government securities owned by a retail customer.
The RBI has, since February 2012, introduced an additional facility of web-based NDS auction module to facilitate online bidding by constituents subsidiary general ledger clients (CSGL clients) or GAHs in primary auctions of G-Secs.
However, it said, the access is subject to controls by respective primary member (PM) as it would continue to be responsible for settlement of CSGL bids or trades in respect of its GAHs, as is presently the case.
The web-based auction module, it stated, is an additional facility and all regulations related to current CSGL account holders or PMs and client bidding system would remain.
"All actions on web-based NDS auction application would also be governed by the extant rules, regulations, notifications and/or any other instructions issued by it from time to time," it informed.