With the entry of co-operative banks, regional rural banks, pension funds, mutual funds and non-banking finance companies, the institutional investor base has been reasonably diversified. Notwithstanding the predominantly institutional character of the market, Reserve Bank has recognised merit in promoting retail participation.
Small and medium sized investors have been enabled to participate in the primary auction of G-sec through a “Scheme of Non-competitive Bidding” and Primary Dealers (PDs) have been mandated minimum retailing targets. Web-based NDS-OM has also been enabled by the Reserve Bank to provide direct trading access to G-sec to non-NDS members like retail/midsegment/corporate entities having gilt accounts with banks & PDs.