The Reserve Bank of India has issued the Master Direction – Reserve Bank of India (Access Criteria for NDS-OM) Directions, 2025 (“Master Direction”) in supersession of Reserve Bank of India (Access Criteria for NDS-OM) Directions, 2024 dated October 18, 2024 (please refer to the trail e-mail for a detailed read).
Key Takeaways:
- Any person/entity eligible to invest in Government securities in terms of the applicable rules/ guidelines issued by the Government of India / State Governments / the Reserve Bank, as amended from time to time will be eligible to access NDS-OM either through direct access or through indirect access or through Stock Broker Connect, in terms of the Master Direction.
- The following entities will be eligible for direct access to NDS-OM subject to fulfilment of all requirements and conditions stipulated in these Directions:
- Banks;
- Standalone Primary Dealers;
- Non-Banking Financial Companies including Housing Finance Companies;
- All India Financial Institutions;
- Mutual Funds;
- Provident Funds;
- Pension Funds;
- Insurance Companies
- Regulated Market Infrastructure Institutions (MIIs) for investing their settlement guarantee fund in Government securities as RBI may specifically permit.
- Entities that are eligible to seek direct access to NDS-OM have to fulfil the following requirements:
- SGL account with the Reserve Bank;
- Current account with the Reserve Bank or a Designated Settlement Bank; and
- Membership of securities settlement segment of Clearing Corporation of India Limited (CCIL)
- The application process for seeking direct access and the process of grant of access has been provided in details in the present Master Directions.
- Entities can also avail indirect access if:
- it is not an entity eligible for direct access to NDS-OM in terms of paragraph 4 of these Directions; or
- it does not satisfy the requirements to seek direct access to NDS-OM in terms of paragraph 5 of these Directions; or
- it is not granted direct access to NDS-OM.
- Stock Broker connect: An eligible stock broker desirous of providing access to its individual constituents/clients maintaining demat accounts with depositories registered with SEBI to NDS-OM may make an application in the format given in Annex – 2 to the Chief General Manager, Financial Markets Regulation Department, Reserve Bank of India, 9th Floor, Central Office Building, Shahid Bhagat Singh Marg, Mumbai – 400001. The approval given to a stock broker is not transferable. The Reserve Bank may initiate such steps as may be necessary, including imposing additional conditions, if the entity is found to violate the provisions of these Directions or any other rules or regulations or conditions for using the facility
Please refer to the hyperlink below for a detailed read of the Master Direction:
Source: Reserve Bank of India
