MUMBAI, JULY 28, 2020 (GPN): National Stock Exchange of India Ltd (NSE), India’s leading stock exchange started trading in T-bills (Treasury Bills) and SDLs (State Development Loans) in its Capital Market Segment. In line with equity trading, investors can now buy and sell T-bills and SDLs through NSE Trading Members. The Dated Government Securities (G-sec) are already offered in Capital Market Segment. The trading started on 27th July 2020.

T-bills and SDLs are both part of the government securities group and have been widely accepted as a safer investment choice. T-bills are issued by the Central Government whereas SDLs are issued by State Governments. Both are reckoned as eligible investments for banks for the purpose of meeting SLR (Statutory Liquidity Ratio) requirements. T-bills are issued in three maturities namely 91 days, 182 days and 364 days whereas SDLs are largely issued in the range of 3 to 35 years with the majority of issuance taking place in the 10 year maturity segment.

Earlier in 2018, NSE had introduced the NSE goBID online platform to allow retail investors to invest in fresh/re-issuances (primary market) of G-secs and T-bills through the non-competitive bidding mechanism. From Nov 2019, NSE also added SDLs to this facility. NSE has facilitated subscription of more than Rs. 240 crores from retail investors in government securities. In addition to G-sec, now T-bills and SDLs are also offered in the capital market segment which provide an alternate exit route to these investors who have subscribed through the primary market.

Mr. Vikram Limaye, MD & CEO, NSE said, “Availability of a secondary market for these securities would encourage participation in the primary markets. Now all the major government securities including G-sec, SDL and T-bills are offered at NSE in both primary and secondary market platforms. To date, the government securities market is dominated by institutional investors. We believe that with the NSE goBID primary platform and the availability of these securities in the Capital Market Segment for trading, coupled with NSE’s wide reach is likely to increase participation of retail investors in this asset class. This will aid in diversifying the investor base for the Government of India securities.” ENDS