What changed
RBI reviewed earlier directions and decided that Primary Dealers can now undertake securities transactions through members of MCX Stock Exchange. This is in addition to the previously allowed exchanges: National Stock Exchange, OTC Exchange of India, and Bombay Stock Exchange.
What it means for you
Primary Dealers gain an additional trading platform for securities, potentially improving liquidity and execution flexibility. Banks and lenders dealing with PDs may see more efficient market access and pricing, though the core regulatory framework remains unchanged.
What you must do
- Update internal trading policies to include MCX Stock Exchange as an approved venue for securities transactions with PDs.
- Ensure compliance with all existing RBI guidelines on securities transactions when using the new exchange.
- Monitor operational readiness and connectivity with MCX Stock Exchange for seamless execution.
Who it affects
Primary Dealers, Non-bank clients of Primary Dealers, Banks and financial institutions transacting with PDs
Which exchanges were already permitted for PD securities transactions before this notification?
Before this notification, Primary Dealers could undertake securities transactions through the National Stock Exchange, OTC Exchange of India, and Bombay Stock Exchange.
Does this notification change any other requirements for Primary Dealers?
No, this notification only adds MCX Stock Exchange as an additional permitted trading venue. All other existing guidelines on securities transactions remain unchanged.