What changed
This Master Direction supersedes the October 18, 2024 version, consolidating and updating access criteria for NDS-OM. It introduces a clear three-tier access framework: direct, indirect, and stock broker connect. Definitions for entities like All India Financial Institutions and Designated Settlement Banks are explicitly listed.
What it means for you
Banks and lenders must ensure their NDS-OM access aligns with the updated eligibility and access modes. The explicit inclusion of stock broker connect expands retail participation channels. Entities need to review their current access arrangements to comply with the new framework.
What you must do
- Review your entity's current NDS-OM access mode (direct/indirect/stock broker connect) against the updated criteria.
- Update internal policies and compliance checklists to reflect the new definitions and access provisions.
- Ensure all eligible subsidiaries and clients are aware of the three access options available.
- Coordinate with your DSB or stock broker if using indirect or broker connect access to confirm compliance.
Who it affects
Banks (including RRBs, cooperative banks, payment banks, small finance banks), All India Financial Institutions (EXIM Bank, NABARD, NHB, SIDBI, NaBFID), Non-Banking Financial Companies (NBFCs), Stock brokers offering NDS-OM access to clients, Designated Settlement Banks (DSBs)
What is the effective date of this Master Direction?
The Direction came into force with immediate effect from February 7, 2025, superseding the 2024 version.
Can retail investors access NDS-OM under this new framework?
Yes, through the Stock Broker Connect mechanism, which allows stock brokers to provide NDS-OM access to individual clients with demat accounts.
Does this Direction change the eligibility criteria for investing in government securities?
No, eligibility remains as per existing rules/guidelines from Government of India, State Governments, or RBI. The Direction only governs access to the NDS-OM platform.