Role of Primary Dealers in the Government Securities Market Development Regulation and Supervision
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 86 rapid-fire Q&A cards.
When did RBI introduce the Primary Dealer system in G-Sec market?
1995
What are the four objectives RBI set for introducing the PD system?
Strengthen G-Sec infrastructure, develop underwriting capabilities, improve secondary market, enable OMO conduit.
As of June 2026, how many PDs exist in India?
21 PDs total—14 bank departments and 7 Standalone PDs (SPDs).
What disqualifies an entity from PD authorisation?
Material litigation, regulatory action or investigation within preceding one year.
What is the minimum Net Own Funds (NOF) for a Standalone PD?
₹250 crore
Are PDs permitted to establish step-down subsidiaries?
No; rule preserves focused structure and prevents regulated risk leakage.
What is the minimum investment requirement for SPDs in G-Secs?
At least 50% of total financial investments must be in G-Secs.
What minimum secondary market turnover ratios must PDs achieve annually?
5× for dated G-Secs; 10× for T-Bills/CMBs.
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