The entry of mutual funds and non-banking finance companies in recent years has broadened the base. In addition, the entry of 100 per cent Gilt Mutual Funds has broadened the potential for retail investor base.
To enable small and medium sized investors to participate in the primary auction of government securities, a “Scheme of Non Competitive Bidding” was introduced in January 2002, which is open to any person including firms, companies, corporate bodies, institutions, provident funds, trusts, and any other entity prescribed by RBI.