Infrastructure plays an important role in development of markets and want of an efficient, transparent and robust infrastructure can keep market participants away on one extreme or cause market crisis on the other. India can boast of being one of the few emerging countries with such a state of the art financial market infrastructure for the G-Sec market.
A state-of-the-art primary issuance process with electronic bidding and fast processing capabilities, dematerialized depository system, DvP mode of settlement, electronic trading platforms (Negotiated Dealing Systems and Negotiated Dealing Systems-Order Matching) and a separate Central Counter Party in the Clearing Corporation of India Ltd. (CCIL) for guaranteed settlement are among the steps that have been taken by the Reserve Bank over the years towards this end.