The above is news from Indian Express. The following are som | ECONOMY by VIVEK SINGH

The above is news from Indian Express. The following are some relevant points.

1) When Govt issues its securities first time (Primary Market) then certain authorized (by RBI) institutions are allowed purchase Govt.securities. These institutions are called Primary dealers but these are basically banks and finance related companies. [Govt. security market either primary or secondary is managed by RBI]

2) Once these authorized institutions have purchased the Govt. securities in the primary market then other institutions are allowed to purchase these securities in the secondary market like RBI, Banks, NBFCs and any other institutions. (RBI is not allowed in primary market)

3) Few years back RBI allowed individuals (retail investors) to participate in primary market as well as secondary market but not directly rather through other institutions.

4) In Feb 2021, RBI allowed individuals (retail investors) to participate in the primary as well as secondary market DIRECTLY. You can refer this link for that news https://t.me/VivekSingh_Economy/2799). To facilitate this now, RBI has launched "RBI Retail Direct Scheme", where in individuals can open account with RBI for trading Govt. securities directly on their own.

5) Till now, Govt. securities was traded in a lot size of minimum Rs. 5 crore and by the institutional investors (banks, NBFCs etc., RBI) but now with the participation of retail investors, this lot size will be reduced and retail investors will be able to buy/sell govt. securities easily. If a retail investor is able to sell his govt. securities easily (even of small value)........that means more and better liquidity facility.