The Securities Exchange Board of India (SEBI) on February 11, 2025, issued a notification regarding the Facilitation to SEBI registered Stock Brokers to access Negotiated Dealing System-Order Matching (NDS-OM) for trading in Government Securities Separate Business Units (SBU).
The Reserve Bank of India, through its notification dated February 07, 2025, has permitted SEBI-registered non-bank brokers to access the Negotiated Dealing System-Order Matching (NDS-OM) under the Master Direction - Reserve Bank of India (Access Criteria for NDS-OM) Directions, 2025.
To facilitate their participation in the Government Securities (G-Secs) market, stock brokers may operate through a Separate Business Unit (SBU) within their entity. The SBU's activities must be ring-fenced from other securities market operations, and separate accounts and net worth segregation must be maintained.
Additionally, since the SBU falls under a different regulatory jurisdiction, investor grievance mechanisms such as the Investor Protection Fund (IPF) and SCORES will not be available for investors utilizing SBU services.
[Notification No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/143]
