The term NSE stands for the National Stock Exchange of India Limited. It is a leading stock exchange of India which is situated in Mumbai, Maharashtra. This was established in the year 1992 as the first dematerialized electronic exchange in the country.
The flagship index of NSE is the NIFTY 50, a stock index is used extensively by the investors in India, and around the world act as a barometer of the Indian capital market. The NSE was established with a diversified shareholding capacity comprising of domestic and global investors. They offer trading, clearing, and settlement services in equity, equity derivatives, debt, commodity derivatives, and currency derivatives segments.
On Tuesday the NSE announced to start its trading in Treasury bills (T-bills) and State Development Loans (SDLs) in its capital market segment. In connection with equity trading, investors can now buy and sell T-Bills and SDLs through NSE trading members. They stated that, on 27th July onwards the dated government securities, which are already offered in the capital market segment, started trading.
Generally, the T-Bills and SDLS are issued by the central government and the state governments. So both of these items are considered as eligible investments for banks to meet their statutory liquidity ratio (SLR) requirements. The T-Bills are issued in maturity periods ranging from — 91 days, 182 days, and 364 days — whereas SDLs are issued in the range of three to 35 years in which the majority of issuance taking place in the 10-year maturity segment.
The CEO & MD OF NSE Mr. Vikram Limaye stated that “the availability of a secondary market for these securities would encourage the participation of the investors in the primary markets and now, all the major government securities, including G-sec, SDL and T-bills, are offered at NSE in both primary and secondary market platforms.” NSE had introduced an online platform called NSE goBID in 2018 to allow retail investors to invest in fresh or re-issuances of G-secs (primary market) and T-bills through the non-competitive bidding mechanism. From November 2019, they added SDLs to this facility, it will aid in diversifying the investor base for the G-sec.
