Regulatory Alerts2025-02-11
Facilitation to SEBI Registered Stock Brokers to Access NDS-OM for Government Securities Trading via Separate Business Units
The Securities and Exchange Board of India (SEBI) issued this circular to enable SEBI-registered stock brokers to access the Negotiated Dealing System-Order Matching (NDS-OM) for trading in Government Securities through a Separate Business Unit (SBU). The regulator mandates that these SBUs must be strictly ring-fenced from the broker's core securities market activities, maintaining separate accounts and segregated net worth to ensure an arms-length relationship. Consequently, investors transacting through these SBUs are excluded from the stock exchanges' Grievance Redressal Mechanism and Investor Protection Fund as the unit falls under the jurisdiction of the Reserve Bank of India.
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