Considering wide reach of exchanges, approach of allowing retail investors to access the G-sec market through stock exchanges can be one of the most feasible options. The Reserve Bank had also allowed buying and selling of government securities through stock exchanges since 2003 to facilitate easier access and wider participation. Trading volumes, however, continue to be very low in the exchanges.
The Working Group on Enhancing  2  BIS central bankers’ speeches  Liquidity in the Government Securities and Interest Rate Derivatives Markets (Chairman: R. Gandhi) [Gandhi Committee] had examined this aspect and had made recommendations to simplify operational procedures for seamless movement of securities from SGL form to demat form and vice versa and permit banks and PDs to obtain limited membership of stock exchanges for undertaking proprietary trades in G-sec on the exchanges to promote trading of G-sec on stock exchanges.