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Debt Market

Who are the Primary Dealers (PDs) with RBI?

26 May 2025 Zinkpot 124
Who are the Primary Dealers (PDs) with RBI?

DEFINITION

 

Primary Dealers (PDs) are financial institutions authorized by the Reserve Bank of India (RBI) to underwrite and participate directly in the auction of government securities, including Treasury Bills (T-Bills) and Dated Securities (G-Secs). The Reserve Bank of India (RBI) designates certain institutions as Primary Dealers (PDs) to strengthen the government securities (G-Sec) market. 

 

TYPES

These PDs are categorized into two types:

  1. Standalone Primary Dealers: Non-bank entities that specialize in dealing with government securities.
  2. Bank Primary Dealers: Scheduled commercial banks authorized to undertake PD activities.

 

Standalone Primary Dealers

 

  1. ICICI Securities Primary Dealership Limited
  2. Morgan Stanley India Primary Dealer Pvt. Ltd.
  3. Nomura Fixed Income Securities Pvt. Ltd.
  4. PNB Gilts Ltd.
  5. SBI DFHI Ltd.
  6. STCI Primary Dealer Ltd.

 

Bank Primary Dealers

 

  1. Bank of America, N.A.
  2. Bank of Baroda
  3. Canara Bank
  4. Citibank N.A.
  5. HDFC Bank Ltd.
  6. HSBC (Hongkong and Shanghai Banking Corporation Ltd.)
  7. J.P. Morgan Chase Bank N.A.
  8. Standard Chartered Bank
  9. Axis Bank Ltd.
  10. IDBI Bank Ltd.
  11. Kotak Mahindra Bank Ltd.

 

ROLE OF PDs

These Primary Dealers play a crucial role in:

  1. Participating in primary auctions of government securities.
  2. Providing liquidity in the secondary market by acting as market makers.
  3. Supporting RBI's monetary policy operations, including Open Market Operations (OMOs).

 

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