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What is the role of the Negotiated Dealing System (NDS) in the Government Securities Market?

medium Q8 of 15
Financial Awareness - Risk, Stability & Emerging Finance
What is the role of the Negotiated Dealing System (NDS) in the Government Securities Market?
AIt is a platform for electronic trading of government securities
BIt is a system for issuing Treasury Bills only
CIt is a regulatory body overseeing government securities
DIt is a scheme for retail investors to buy government bonds
Step-by-Step Solution
  1. Step 1: Understand NDS

    The Negotiated Dealing System is an electronic platform operated by RBI for trading government securities among banks and financial institutions.
  2. Step 2: Analyze options

    NDS is not limited to Treasury Bills issuance, nor is it a regulatory body or a retail scheme.
  3. Final Answer:

    It is a platform for electronic trading of government securities → Option A
  4. Quick Check:

    NDS = Electronic trading platform for G-Secs ✅
Quick Trick: NDS facilitates electronic G-Sec trading.
Common Mistakes:
  • Confusing NDS with regulatory bodies or issuance systems.
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