RBI Retail Direct Regulations

Introduction
  • These rules shall be known as the Retail Direct Rules for Government Securities, 2021 ( hereinafter referred to as “Retail Direct Rules” ).
  • Applicability:
    1. These Retail Direct Rules (including any notifications, procedures, circulars issued thereunder) shall be applicable and binding on all Retail Direct Investors investing through the Retail Direct Portal.
    2. The Retail Direct Rules shall remain in force unless explicitly stated to the contrary.
    3. The Retail Direct Rules shall be governed and construed in accordance with the applicable laws and rules, circulars, guidelines in whatever form issued by RBI as amended from time to time.
  • Direct Portal The Retail Direct Rules will permit Retail Direct Investors to access the following facilities through the Retail Direct Portal offered under these Rules:
    1. Open and maintain the Retail Direct Gilt (RDG) Account;
    2. Participate in the non-competitive bid segment of primary auctions; and
    3. Participate in secondary market transactions on NDS-OM for buying and selling of Government Securities.
Definitions
  1. Aggregator: “Aggregator” means the Clearing Corporation, acting as the aggregator for receiving bids for primary auctions from Retail Direct Investors under the Scheme.
  2. Applicable Laws: “Applicable Laws” means all laws or regulations applicable to Retail Direct investors whether by CLEARING CORPORATION or the Regulator or any other relevant authority and includes the Payment and Settlement Systems Act, 2007, the Payment and Settlement Systems Regulations 2008, the Government Securities Act, 2006, the Government Securities Regulations, 2007, the KYC Directions, FIMMDA Code of Conduct, RBI notifications on CSGL accounts, any directions, guidelines, circulars, notifications issued by RBI in relation to Government Securities and/or participation on the Retail Direct Portal, etc..
  3. Business Day: “Business Day” means a calendar day when Clearing Corporation is open for conduct of business.
  4. Clearing Corporation: “Clearing Corporation” means The Clearing Corporation of India Ltd.
  5. CSGL Account: “CSGL Account” means the Constituent Subsidiary General Ledger Account permitted by RBI to facilitate entities having Subsidiary General Ledger (with RBI), acting as custodians on behalf of their constituents, for holding Government Securities in scripless form.
  6. Data: “Data” means the any information in relation to the transactions in Government Securities undertaken by the Retail Direct Investors on the Retail Direct Portal including any instructions provided with respect to such transactions.
  7. FIMMDA Code of Conduct: “FIMMDA Code of Conduct” means the Code of Conduct for transacting in Government Securities using RBI’s “Negotiated Dealing System – Order Matching (NDS-OM) published by Fixed Income Money Market and Derivatives Association of India.
  8. FV: “FV” means face value of the Government Security.
  9. Government Securities: “Government Securities” for the purpose of the Scheme, mean securities issued in the form of stock by credit to SGL/ CSGL account maintained with RBI as defined under Section 3(iii) of the Government Securities Act 2006. These include:
    1. Government of India Treasury Bills;
    2. Government of India dated securities;
    3. Sovereign Gold Bonds (“SGB”);
    4. State Development Loans.
  10. KYC Directions: “KYC Directions” mean the Master Direction - Know Your Customer (KYC) Direction, 2016 (as amended from time to time).
  11. Member: “Member” means entities who have been granted membership of Clearing Corporation as per its membership policy.
  12. NDS-OM or NDS OM Retail Portal: “NDS-OM” or NDS OM Retail Portal means RBI’s screen based anonymous electronic order matching system for trading in Government Securities in the secondary market as available to the Retail Direct Investor under the Scheme.
  13. Odd Lot segment: “Odd Lot segment” means odd lot segment of NDS-OM to facilitate trading in smaller lot sizes by Retail Direct Investors, with the minimum trading lot of INR 10,000 or such lot as may be specified by RBI from time to time.
  14. OTP: “OTP” means one-time-password.
  15. OVD: “OVD” means Officially Valid Document defined under the KYC Directions.
  16. Receiving Office: “Receiving Office” means the Clearing Corporation, acting as the receiving office for receiving bids for Sovereign Gold Bonds from Retail Direct Investors under the Scheme.
  17. Regulator: “Regulator” means the Reserve Bank of India (“RBI”).
  18. Retail Direct Gilt (RDG) Account: “RDG Account” means gilt account maintained in the books of RBI under this Scheme.
  19. Retail Direct Portal: “Retail Direct Portal” means RBI’s Retail Direct online portal facilitating all services specified under the Scheme.
  20. Retail Direct Investors: “Retail Direct Investors” means individuals (natural persons) who are eligible to invest under the Scheme and includes non-resident retail direct investors, eligible to invest in Government Securities under the Foreign Exchange Management Act, 1999.
  21. Request for Quote (RFQ) mode: “RFQ mode” means the on-screen negotiation system of RBI’s NDS-OM system.
  22. Scheme: “Scheme” means the Retail Direct Scheme as introduced by the RBI vide circular dated July 12, 2021 (as amended from time to time).
  23. SMS: “SMS” means short message service.
  24. VFT: “VFT” means Value Free Transfer of Government Securities as permitted by RBI vide notification dated November 16, 2018 (as amended from time to time).
Membership
  1. Eligibility
    1. Retail Direct Investors can register under the Scheme and maintain an RDG Account, if they have the following:
      1. Rupee savings bank account maintained in India;
      2. Permanent Account Number (PAN) issued by the Indian Income Tax Department or any equivalent tax document issued under foreign laws;
      3. Any OVD for the purpose of ‘know you customer’ verification;
      4. Valid email id; and
      5. Registered mobile number in Retail Direct Investor’s name.
      6. Where an applicant is a minor, the aforementioned requirements i.e. under 1. (a) (i) through (a) (v) will be applicable in case of the minor and the guardian.
    2. The RDG account can be opened singly or jointly with another Retail Direct Investor, upon fulfilling the eligibility criteria as stated in 1. (a) (i) through (a) (vi) above.
  2. Registration and Opening of RDG Account: Eligible Retail Direct Investors will be permitted to register on the Retail Direct Portal.
    1. Retail Direct Investor applicants can fill up an online application form by furnishing personal details such as full name, PAN, mobile number, email address, residential address, bank account number etc. The mobile number and email address shared in the application form will be authenticated using OTP that will be sent to that mobile number and email address. All customer requests and services after opening of the RDG Account will be OTP based.
    2. The Retail Direct Investor will be provided with a tracking number to track the application status.
    3. The Retail Direct Investor applicants seeking registration shall adhere to the KYC Directions issued by RBI and as required under the Retail Direct Portal. The Retail Direct Investor applicants may be required to submit such additional documents and details as may be required in line with the KYC Directions. In case of joint accounts, the KYC verification will be done for both the account holders. Where the applicant is a minor, KYC will be processed for the minor and the guardian in accordance with the KYC Directions. In case of non-adherence to the said KYC norms, the individual will be permitted to resubmit application after making the necessary changes.
    4. The bank account of the Retail Direct Investor applicant will also be validated. This will be part of the overall registration process.
    5. Upon successful registration, the RDG Account will be opened in the name of the Retail Direct Investor(s). Information in relation to the RDG account number, login id & password to access the Retail Direct Portal will be made available to the Retail Direct Investor through SMS/e-mail. All transactions of the Retail Direct Investor will be undertaken through the RDG Account.
    6. The Retail Direct Investor will be permitted to modify/ resubmit any details previously provided for the purpose of registering on the Retail Direct Portal. Any such additional or modified information shall also be subject to further KYC checks. Every applicant shall ensure that the information given to Clearing Corporation is true and correct in all respects.
    7. The RDG Account shall be available for primary market participation as well as secondary market transactions on NDS-OM. Clearing Corporation shall maintain the RDG Accounts of all the Retail Direct Investors on behalf of RBI.
    8. After completion of registration, a Clearing Corporation ID will be assigned to each Retail Direct Investor opting for secondary market trading on NDS OM.
    9. Every Retail Direct Investor shall provide information that is correct, true and complete in all respects. If any information is found to be intentionally presented as false, incorrect, or if there is a breach of any condition of registration on the Retail Direct Portal, action as deemed appropriate may be initiated against the Retail Direct Investor.
  3. Terms and Conditions
    1. Retail Direct Investor(s) shall ensure that all regulatory requirements are being duly complied with.
    2. Any insolvency related proceedings initiated against the Retail Direct Investor or any other regulatory bar or restriction or legal disability against the Retail Direct Investor will disentitle such Retail Direct Investor to trade/deal on the Retail Direct Portal. Any such event adversely affecting the Retail Direct Investor’s ability to continue its participation on the Retail Direct Portal shall be immediately communicated by the Retail Direct Investor to Clearing Corporation on the occurrence of such event.
    3. The Retail Direct Investor (or Guardian in case of Minor) seeking registration shall be of sound mind and shall not suffer from any legal disqualification of whatever nature.
    4. Admission to the Retail Direct Portal is subject to the fulfillment of the requirements stated herein. RBI/ Clearing Corporation shall not be held responsible for any delay on account of non-fulfillment of the requirements by the Retail Direct Investor.
    5. Admission to the Retail Direct Portal only creates a bare personal and non- transferable right to access the services offered under the Scheme; and does not in any manner constitute the grant or creation of any beneficial or ownership interest in the Retail Direct Portal including but not limited to any intellectual property rights.
    6. A Retail Direct Investor shall not assign, mortgage, pledge, hypothecate or charge its right of access to the Retail Direct Portal or any rights or privileges attached thereto nor shall it have the right to give license or grant power of attorney in respect of such rights and privileges. No such attempted assignment, mortgage, pledge, hypothecation or charge or license or power of attorney shall be effective for any purpose. Clearing Corporation may suspend any Retail Direct Investor who acts or attempts to act in violation of the provision of this rule or take any other disciplinary action as it may deem fit.
    7. A Retail Direct Investor admitted to the Retail Direct Portal, understands that all investment and disinvestment decisions are based on its own evaluation of financial circumstances and investment objectives. This extends to any decisions made by the Retail Direct Investor on the basis of any information that may be made available on the Retail Direct Portal.
    8. RBI/Clearing Corporation expressly disclaims any liability or attributed to any of its officers, directors, partners, employees, agents, subsidiaries, affiliates or business associates on account of or in connection with any trading losses, cost of damage incurred by the Retail Direct Investor consequent upon relying on investment information, research opinions or advice or any other material/information whatsoever available on the Retail Direct Portal, literature, brochure issued by RBI/ Clearing Corporation.
    9. RBI/ Clearing Corporation does not provide any investment advise in connection with the Scheme or the Retail Direct Portal and the Retail Direct Investor shall desist from seeking or soliciting any such information relating to any investments contemplated by the Retail Direct Investor.
    10. No Retail Direct Investor shall be entitled to raise any grievances before any forum except as provided in Chapter X below
  4. Personal Information- Collection, Usage And Disclosure
    1. Any personal information submitted by the Retail Direct Investor shall be held in accordance with applicable law.
    2. The Retail Direct Investor, making an application under the Scheme consents to use/ disclose/ transfer the said information for such purposes strictly in connection with or relating to the Scheme.
    3. Clearing Corporation shall have the right to use or retain the information received from the Retail Direct Investors for providing Data in an aggregated manner or trade-by-trade information for various purposes. However, Clearing Corporation shall take utmost care to ensure that information regarding the trade particulars of the Retail Direct Investors are not disclosed to any entity(ies) except where such disclosure is required by any law, court, tribunal, Regulator, insolvency official or otherwise any other governmental or statutory authority, or is necessary to be disclosed by the Clearing Corporation under any legal proceedings or to any professional appointed by it with respect to services under the Scheme or as consented to by the Retail Direct Investor.
  5. Member Account and Confidentiality
    1. The Username and Password shall be provided on the registered mail id of the Retail Direct Investor.
    2. The username and password for accessing the Retail Direct Portal provided to the Retail Direct Investor shall always be held confidential by the Retail Direct Investor.
    3. Retail Direct Investor shall comply with all the authentication procedures prescribed for accessing the Retail Direct Portal.
    4. Retail Direct Investor shall comply with the Password Policy issued by the Clearing Corporation as updated from time to time.
    5. Retail Direct Investor shall be solely liable for any risks associated with the internet and shall be fully liable and responsible for any or all acts done in disregard of any security standards.
    6. A Retail Direct Investor shall be solely responsible for maintaining the confidentiality of the account, password and for restricting access to the network or hardware used to connect to the Retail Direct Portal.
    7. Retail Direct Investor shall at all times be solely responsible for any act in connection with the account or password that is maintained for the access to services offered under the Scheme and/or Retail Direct Portal.
    8. Any services offered under the Retail Direct Portal or the Scheme does not endorse any service to minors. A Retail Direct Investor admitted as a minor shall access the Retail Direct Portal only through a guardian at all times of such access. RBI/ Clearing Corporation disclaims any liability on account of any violation in this regard and reserves the right to forthwith suspend membership of such minor if found to be in violation of this requirement.
  6. Account Closure by Retail Direct Investor
    1. A Retail Direct Investor seeking to close its RDG Account can initiate the process on the Retail Direct Portal, by submitting the online application form, requesting for closure of the RDG Account (“Account Closure Request”) and confirming that:
      • All rights arising out of the participation on Retail Direct Portal shall cease to exist in case of closure of the RDG Account.
      • Clearing Corporation may retain all information it has received from any Retail Direct Investor during the course of its participation on the Retail Direct Portal, even after closure of the RDG Account.
      • There are no Government Securities lying in the RDG account and no instructions in relation to operation of the RDG Account and/or the trades remain pending/ unexecuted.
    2. In the event of any Government Securities lying in the RDG Account, the Retail Direct Investor will be required to sell/ transfer the Government Securities before Clearing Corporation initiates the closure of the RDG Account.
    3. Upon receipt of the Account Closure Request, the RDG Account of the Retail Direct Investor will be deactivated. The Retail Direct Investor will not be permitted to carry out any actions in the RDG Account upon deactivation of the RDG Account. The Clearing Corporation will initiate the closure of the RDG Account within [3] Business Days of receipt of the Account Closure Request. The Investor will be advised formally of the closure of the Account.
    4. The Clearing Corporation may not close the RDG Account if:
      • the closure would result in any breach or violation of any legal/ regulatory requirements or breach or violation of any decree, order, instruction of any court, tribunal or statutory authority;
      • The RDG Account balances are not reconciled.
  7. Account closure/ suspension by Clearing Corporation
    1. Clearing Corporation may suspend or close the RDG Account of a Retail Direct Investor in the event of: (i) the Retail Direct Investor being prohibited from participation on the Retail Direct Portal after a notice in writing to the Retail Direct Investor and under advice from RBI; (ii) voluntary or compulsory insolvency of the Retail Direct Investor; (iii) failing to adhere to any of the conditions/criteria to which it has been subject to under the Retail Direct Rules or any other Applicable Laws, after a reasonable notice in writing to the Retail Direct Investor; (iv) The Retail Direct Investor being suspended from participation on the Retail Direct Portal by any regulatory, judicial, law enforcement or any other statutory authority or agency.
    2. Any such suspension will be with immediate effect. Such suspension shall continue till such time as the Clearing Corporation decides (i) that the conditions for suspension no longer exist, or (b) in case of temporary suspension, the period of suspension has been completed, or (iii) to close the account. The Retail Direct Investor shall be issued a notice informing him about such suspension.
    3. The Clearing Corporation may, suo moto or upon appeal by the Retail Direct Investor, reconsider, revoke or modify its decision with respect to the suspension of such Retail Direct Investor.
    4. The Retail Direct Investor will be liable for its obligations with respect to transactions undertaken on the Retail Direct Portal before such suspension, including any incidental obligations thereto. (The Retail Direct Investor shall however not be eligible for any rights with respect to its participation on the Retail Direct Portal.)
    5. The Clearing Corporation may, where considered necessary will address the concerns in relation to any of the events specified in 5 (a) of this Chapter, close the RDG Account of the Retail Direct Investor. Closure of the RDG Account will be without prejudice to the rights of Clearing Corporation to proceed against such Retail Direct Investor to enforce its rights as per Retail Direct Rules.
  8. Accessibility
    1. The endeavour is to make the account under the Retail Direct Portal accessible at all times. However, the Clearing Corporation does not provide any warranty on the accessibility when it may be disrupted due to technical disruptions, nor is any warranty issued for the accuracy, adequacy or completeness of the information or any materials.
    2. The window for the services offered under the Scheme shall be notified on the Retail Direct Portal. The window for services shall normally function on all days except such days as may notified on the Retail Direct Portal from time to time.
    3. The window for availing the services under the Retail Direct Portal may be disallowed on days other than or in addition to scheduled holidays. Similarly, the window may also be opened on the days originally declared to be holidays and such decision shall be final and binding;
    4. The services and session timings set and may extend, advance or reduce dealing hours by notifying as and when it deems fit and necessary in this regard;
    5. Liability in case of any error, omission in the information and/or material made available by Clearing Corporation or RBI is expressly disclaimed.
    6. The Clearing Corporation does not provide any warranty- implied, expressed or statutory on account of any computer virus, hacking or non- functioning of the system due to any malware not under the control of the Clearing Corporation, with respect to the services as provided under this website.
    7. All services are provided on an as is as available basis.
    8. The Retail Direct Investor shall solely be responsible for the technical and hardware capabilities or of such properties necessary to avail the services under this website.
    9. The services provided on the Retail Direct Portal shall be monitored at all times and the Retail Direct Investor consents in connection with the use of the Retail Direct Portal.
Primary Market Participation
  1. The participation of Retail Direct Investor in primary auction of Government Securities (other than SGB) will be on non-competitive basis.
  2. Bidding
    1. On receipt of non-competitive bids in a particular security, the Clearing Corporation will submit a single aggregate bid to RBI on auction date.
    2. In case of SGBs, the individual bids will be submitted to RBI and the Retail Direct Investors will be permitted to place/ withdraw bids during the bidding interval or the period of subscription.
    3. Only one active bid will be allowed per Retail Direct Investor in the non-competitive portion for respective Government Security.
    4. The minimum and maximum limit per bid will be as specified by the RBI from time to time and the same will be validated by the Clearing Corporation.
  3. Funding
    1. Each bid will be required to be pre-funded by the Retail Direct Investor. The pre-funding will be based on the indicative price and accrued interest alongwith a markup. In case of SGBs, the funding will be based on issue price declared for the particular issue.
    2. On submission of the bid, the total amount payable for each security will also be displayed on the Retail Direct Portal.
    3. Retail Direct Investors can transfer funds to the designated current account through payment gateways interfaced with the Retail Direct Portal using the following:
    4. Net-banking/UPI facility from the linked bank account, whereby funds will be debited at the time of submission of bids on the Retail Direct Portal;
    5. UPI facility, whereby funds in the linked bank account can be blocked at the time of submission of bids on the Retail Direct Portal which will be debited from the account on successful allotment in the auction.
    6. The funding of the bids can be done either at the time of bidding or at a later time, but, before the closure of bidding/subscription window. Bids which are not funded as at the time of closure of bids to RBI will be cancelled.
  4. Allotment
    1. The allotments will be made to the Retail Direct Investors to the extent of bids submitted by such investor, based on the allotment advice received post completion of the auction process.
    2. In case of partial allotment, a pro-rata allotment will be made to the bidder based on the partial allocation percentage determined during the result declaration process.
    3. On settlement date of auction, after settlement at RBI, the RDG Account shall be credited with the Government Security to the extent of FV allotment. In case of SGBs, post allotment of SGB units at RBI, the RDG Account shall be credited with the SGB unit to the extent of allotment.
  5. Refund
    1. In the event of withdrawal of bids, no allotment or partial allotment will be permitted and the bidder will be eligible for receiving a refund of the amount remitted by him. In the event of excess markup, the markup will be refunded to the Retail Direct Investor post allocation, based on the cut off price for the auction.
    2. Such refunds will be processed by the Retail Direct Portal and will be remitted to the Retail Direct Investor’s respective bank accounts.
  6. Maintenance of Holding Balances
    1. The Clearing Corporation shall maintain the aggregate balance of all the Retail Direct Investors in its CSGL account with RBI.
    2. The changes in balances on account of events like auction allotments, secondary market trades or other activities like redemption, transfers, conversion etc., will be considered and all such activities will be accounted for, to compute the clear holding of every Retail Direct Investor.
  7. The auctions and allotments will be subject to the directions of RBI and/or the Clearing Corporation. All decisions of RBI/ Clearing Corporation in relation to auction, funding, allotment, refunds, etc. shall be final and binding on the Retail Direct Investor. The transactions undertaken in the primary market will be inviolable.
Secondary Market Participation – NDS-OM
  1. General Terms
    1. All Retail Direct Investors are eligible to access NDS-OM for secondary market trading. Such investors shall be admitted as constituents of RBI Retail Direct which will be the CSGL account holder under Clearing Corporation and NDS OM.
    2. The Retail Direct Investor will be permitted to access NDS-OM Order Matching segment and RFQ segment through NDS OM Retail portal.
    3. The Retail Direct Investor can trade in Government Securities, in the Odd Lot segment. RDG Account available balances would be transferred to NDS-OM at the beginning of the day.
    4. The Retail Direct Investor can place sell orders only to the extent of balances available in the RDG Account. Other transfers would be permitted in the RDG Account only after end of trading day.
    5. The Retail Direct Investor can place buy orders only after remittance of funds using service like UPI (transfer/block) and net-banking, through payment gateways linked to the NDS-OM Retail Portal. Funds remitted by the Retail Direct Investor shall be received in the designated current account, with the bank providing payment gateway.
    6. Such trades will flow to Clearing Corporation for settlement. Settlement would happen on T+1 day or such other mode of settlement as may be permitted by RBI. Securities credit to RDG Account in respect of the Retail Direct Investors’ purchases shall be made post completion of settlement on settlement date.
    7. Fund credit to the Retail Direct Investors in respect of their sale shall be made after completion of settlement on settlement date to their registered bank accounts. The excess funds received from the Retail Direct Investors shall be refunded to them on the date of receipt/settlement date.
  2. Orders and Order Validation in Secondary Markets
    1. All orders for purchase, sale or other dealings in Government Securities and other instructions routed through the NDS-OM vide the Retail Direct Investor’s username shall be the sole responsibility of the Retail Direct Investor.
    2. The orders entered into the NDS-OM shall be subject to such validations as may be prescribed from time to time including order (price time and both) conditions and other dealing parameters.
    3. The orders that do not meet the validation requirements applicable to the specific type of order shall be rejected.
    4. The order and trade confirmations shall be provided to the Retail Direct Investoron the NDS OM Retail Portal.
  3. Modification and Cancellation of Orders
    1. Orders shall be modified by effecting changes in the input parameters in the manner and subject to such conditions, as may be prescribed from time to time.
    2. Modified orders may lose its time priority as per the dealing parameters.
    3. In the event of any technical issue or failure of connectivity (not attributable to any act or omission), the outstanding orders may be cancelled and such cancellation shall be binding.
    4. RBI/Clearing Corporation shall not be liable to the Retail Direct Investorfor any losses or costs if orders get matched before execution of the cancellation.
  4. Trading parameters
    1. Clearing Corporation may specify from time to time various trading parameters which may include access to NDS-OM, the types of orders that can be placed on the NDS-OM, lot size, price bands, order matching specifications and such other parameters as may be applicable.
    2. The orders can be placed on the NDS-OM as per the lot size and minimum lot size defined by Clearing Corporation.
    3. The orders cannot be placed beyond the maximum order size as may be notified by Clearing Corporation.
    4. Clearing Corporation may notify the order matching/Request for Quote (RFQ) specifications from time to time which shall include the following:
      1. Orders shall be matched on the basis of price-time priority;
      2. The time recorded at NDS-OM shall be the basis for determining time priority;
      3. If the order matches, then the trade shall take place for the lower of the order quantity placed;
      4. The best bid order shall match with the best offer order. For dealing on Price, the best bid order shall be the one with the highest Price and the best offer order shall be the one with the lowest Price;
      5. In case of the Request for Quote segment, Clearing Corporation may define the expiry time of the order, counterparty groups to whom the order can be addressed etc;
      6. Such other terms as may be notified from time to time.
    5. Orders placed on NDS-OM may not be traded or may be traded partially or fully, based on the order quantity of the matching orders available at that point in time.
  5. Trading Limits
    1. Clearing Corporation shall set the limits based on the pre-funding for trading on NDS-OM for a particular time period and orders will be validated against these limits. Orders would get placed based on successful validation against the available limits for the instruments at that point in time.
    2. In case of limit inadequacy in a particular instrument or all instruments, the respective instrument/s shall be unavailable for trading on the NDS-OM and any order placed by the Retail Direct Investorin such instrument/s shall be rejected.
    3. The various types of limits that can be set are viz. ‘funding limit’, ‘stock balance’.
    4. Retail Direct Investorshall abide by the procedure including automated procedures like ‘payment gateways’, ‘depository links’ or such other procedures as may be notified from time to time, by which various types of limits viz. ‘funding limit’, ‘stock. Limits set by automated procedures shall be binding on the Retail Direct Investors.
    5. Limits may be varied or reduced or new limits may be on the basis of risk perception and such limits shall be binding on the Retail Direct Investor.
  6. Rejection of Orders/Trades
  7. The Orders/Trades may be deleted on account of the following:
    1. When the Orders/Trades are not adequately covered by adequate limits
    2. When Orders are not as per the terms and conditions as applicable to such Orders;
    3. In the event of declaration of unscheduled holiday or sudden development including failure of systems and applications whereby dealing operations for a particular settlement date have been temporarily suspended;
    4. Trades at Off Market Prices;
    5. In the event of Force Majeure.
    6. Such other instances as may be specified from time to time.
  8. System amendment of trades
    1. (In case a holiday is declared on a date which happens to be the settlement date of the trade/s, the system would automatically amend the settlement date of such trade/s as per the holiday handling procedure laid down under Chapter XVIII of Securities Segment Regulation of Clearing CorporationAny additional settlement consideration viz. accrued interest etc., that may become payable by the Retail Direct Investoron account of change in settlement date shall be paid immediately as per procedure prescribed. Failure to pay such additional amount shall constitute a default and shall be handled as per Chapter XVIII of Securities Segment Regulationof Clearing Corporation
Distributions
  1. Distribution of Coupons
    1. Upon receipt of coupon payment from RBI against the total RDG Account holding in a Government Security, the coupon payment entitlement of each Retail Direct Investor will be computed based on their holdings.
    2. The exact amount to be paid will be computed and remitted to the respective bank account of each Retail Direct Investor who is an investor in the concerned Government Security on the date of receipt from RBI.
  2. Distribution of Redemption proceeds
    1. On receipt of redemption proceeds from RBI against the total RDG Account holding in a particular Government Security, the exact entitlement of each Retail Direct Investor will be computed based on its holdings.
    2. The exact amount to be paid will be computed and remitted to the respective bank account of each Retail Direct Investor holding specific Government Securityon the date of receipt from RBI.
  3. The Retail Direct Investors can view such corporate action details on the Retail Direct Portal. The Retail Direct Investors shall also be notified about such updates through messages on their registered mobile and registered email id.
Fees and Charges
  1. No fee will be charged for opening and maintaining RDG Account with RBI.
  2. No fee will be charged by the Aggregator for submitting bids in the primary auctions.
  3. Fee for payment gateway etc., as applicable, will be borne by the registered Retail Direct Investor.
Reports
  1. Retail Direct Portal
  2. The Retail Direct Investor will have access to the following information on the Retail Direct Portal:
    1. Information about his/her holding balances on a daily basis.
    2. Transaction history of Government Securities holdings in the RDG Account.
    3. A detailed audit trail of all bidding, funding, allotment, refund, etc.
    4. Corporate actions on the Government Security investments, including distribution of coupons and redemption proceeds.
  3. The Retail Direct Investors shall also be notified about such updates as specified under A. above, through messages on their registered mobile number and registered email id.
  4. Account Statements
  5. The Retail Direct Investors will also be provided following account statements:
    • Periodic RDG Holding statement in respect to information about Retail Direct Investor’s holding balances.
    • Transaction history of Government Securities holdings in the RDG Account, as per the request of the Retail Direct Investor.
  6. The Clearing Corporationwill also provide MIS reports, as required by RBI, from time to time.
  7. The reports shall be deemed to be a Retail Direct Investor’s confirmation of the transactions undertaken through the Retail Direct Portal or NDS OM Retail Portal.. In the event of any inconsistency and/ or discrepancy in the statements/ reports vis-à-vis transactions undertaken through the Retail Direct Portal or NDS OM Retail Portal, a Retail Direct Investorshall bring the same to the notice of the Clearing Corporation within 7 days of the statements/ reports being published on the Retail Direct Portalor NDS OM Retail Portal or receipt of reports/ statements from the Clearing Corporation, whichever is earlier. Failure by the Retail Direct Investor to respond within such period will not affect the validity of the statements/ reports, and shall be deemed to be an affirmation and acceptance of such statements/ reports.
  8. Clearing Corporation shall have the discretion to make changes in theformats of the statements/ reports as and when it may consider necessary.
Other Services
  1. Gift
    • The Retail Direct Portal will facilitate Retail Direct Investors holding an RDG Account to gift a Government Security to another RDG Account holder.
    • The gift request needs to be raised jointly by the Retail Direct Investorand the beneficiary by providing all the information of the beneficiary account.
    • RD Admin shall approve such request and upon approval, requisite security balance shall be reduced from transferor’ RDG Account and increased in the beneficiary’s RDG Account. If the beneficiary does not have RDG Account, such Gift will be affected only upon opening of an RDG Account in the name of beneficiary.
    • Transmission of requisite security balance from RDG Account of the deceased to the beneficiary’s RDG Account will also be permitted on account of inheritance. The beneficiary will be required to furnish such details as prescribed by the Clearing Corporation from time to time.
  2. Nomination
    • RDG Account holders can assign the nominees for their holdings. The nomination request facility will be available on the Retail Direct Portal. The nomination facility can facilitate maximum of two nominees.
    • The nomination form in the prescribed format duly signed can be filled up and uploaded on the Retail Direct Portal. The RDG Account holder will be required to provide requisite details with respect to the nominee such as relationship between the RDG account holder and nominee, bank account/ RDG account details of the nominee, etc. Where the nominee is a minor, the RDG Account holder will also be required to provide date of birth of the nominee, details of any person in whom the Government Security would be deemed to have vested during the minority of the nominee.
    • The RDG Account holder will also have the right substitute the nominees by filling up the nomination form on the Retail Direct Portal and providing the details as specified under paragraph (b) above, of the new nominee. The RDG Account holder can also cancel such nomination as desired.
    • In the event of death of the registered Retail Direct Investor, the Government Securities available in the RDG Account can be transmitted to the RDG Account or any other Government Securities account of the nominee on submission of death certificate and transmission form.
  3. Pledge/Lien
    • A Retail Direct Investor can also submit requests for creating of pledge/ lien on the Government Securities in its RDG Account.
    • The Retail Direct Investor will be required to provide details of the Government Securities of which the pledge/ lien is proposed to be created such as ISIN number, date of maturity, face value, details with respect to secured party, duly executed transfer forms in favour of the secured party, etc. The specific Government Securities of the Retail Direct Investor will be blocked upon valid creation of such pledge/ lien.
    • The secured party will be required to submit dully filled up invocation form alongwith the details of the Governed Securities (specified under paragraph (b) above) over which pledge/ lien has been created, the transfer forms, and such other details as prescribed by the Clearing Corporation, for the purpose of invocation of such pledge/ lien.
    • The secured party will also have the right to apply for cancellationof such pledge/ lien by providing the details of the Governed Securities (specified under paragraph (b) above) over which pledge/ lien has been created, the invocation forms, and such other details as prescribed by the Clearing Corporation, for the purpose of cancellation of such pledge/ lien.
  4. Conversion to/from Demat: The Retail Direct Portal will facilitate Retail Direct Investors to convert their holdings in the RDG Account to demat securities and vice versa. The conversion request needs to be raised by the investor by providing all the information of the beneficiary account. RD Admin shall approve such request based on actual credits/ debits to the CSGL account at RBI. Upon approval, requisite security balance shall be reduced/ increased from transferor Retail Direct Investor’s RDG Account.
Dispute Resolution
  1. Governing Law: Retail Direct Rules and/ or the use of the services provided through Retail Direct Portalor NDS OM Retail Portal shall be governed by the laws of India. The mere fact that Retail Direct PortalNDS OM Retail Portal can be accessed through internet by a Retail Direct Investor in a country other than India shall not be interpreted to imply that the laws of the said country govern the Retail Direct Rules or the Retail Direct Portal.
  2. Primary Market Transactions: With respect to any grievances, concerns, claims, issues arising out of or in relation to the transactions or with reference to anything incidental thereto, an online grievance submission/ status update facility will be provided to the Retail Direct Investors along with trail of the submission/ closure date and action taken. The grievances will be handled/ resolved by Public Debt Office (PDO) Mumbai, RBI.
  3. Secondary Market Transactions: With respect to any claims, differences or disputes between the Retail Direct Investor and any other member/ Retail Direct Investor, arising out of or in relation to the clearing and settlement of the transactions or with reference to anything incidental thereto, such claim, difference or any dispute related to ‘Retail Direct’ Scheme can be raised on the portal which will be handled/ resolved by Public Debt Office (PDO), RBI, Mumbai.
Other Terms
  1. The Retail Direct Investor has fully read and understood the terms and conditions of the Direct Retail Scheme before making or transacting through theRetail Direct Portal.
  2. The Clearing Corporation shall not be liable for any unauthorized transactions on the Retail Direct Portalor NDS OM Retail Portal by anyone acting in the name of the Retail Direct Investor.
  3. The Clearing Corporation shall have the right topart with/disclose or disseminate such informationconcerning the Retail Direct Investors undertaking transactions through the Retail Direct Portal as deemed necessary to the Regulator,governmental or any other agencies.
  4. Neither the Clearing Corporation nor the directors, managers, officers, employees, authorised person(s) or agents of Clearing Corporationshall be deemed to have incurred any liability for all bonafide acts or any acts done in good faith while managing the Retail Direct Portal, assisting with transactions on the Retail Direct Portal or any matters connected therewith or incidental thereto. Accordingly, no claim or recourse shall lie against Clearing Corporation or the directors, managers, officers, employees, authorised person(s) or agents of Clearing Corporation in relation to such acts.
  5. The Retail Direct Portal will be provided over the internet which is susceptible to interruptions and failures. The Retail Direct Investor(s) shall not hold Clearing Corporation responsible for unavailability of the Retail Direct Portal as a result of internet failure or any other reason whatsoever.
  6. The technical pre-requisites as prescribed by Clearing Corporation, are necessary for the smooth functioning of the Retail Direct Portal. A Retail Direct Investor shall not hold Clearing Corporation responsible for any unexpected behaviour of the Retail Direct Portal resulting from non-fulfillment of the recommended technical pre-requisites.
  7. Clearing Corporation does not, in any manner, warrant that the access of the Retail Direct Portal will be error-free and/or uninterrupted.
  8. The Retail Direct Investor will have to ensure that it does not publish, supply, show or make available to any other person/ entity the facilities/ data available on the Retail Direct Portal or the information provided by the Retail Direct Portal except with the explicit approval of Clearing Corporation. The Retail Direct Investor shall not attempt to modify, translate, disassemble, decompile or reverse engineer the software underlying or made available through the Retail Direct Portal or create any derivative product based on that software.
  9. Clearing Corporation shall not in any way be liable for any loss suffered by the Retail Direct Investor as a result of using the trading facilities on the Retail Direct Portal. Notwithstanding any other provisions of these terms and conditions, Clearing Corporation will have the right to withdraw Retail Direct Investor’s access to the Platform for breach of Retail Direct Portal terms and conditions, or if it is detrimental to the interest/ reputation of the Clearing Corporation.
  10. Neither Clearing Corporation nor the directors, managers, officers, employees or agents of Clearing Corporation guarantee the functioning of the Retail Direct Portal or uninterrupted connectivity to the Retail Direct Portal. Clearing Corporation and the directors, managers, officers, employees and agents of Clearing Corporation shall not be liable in any way to the Retail Direct Investor or any other party for any issue or any underperformance or interruption of Retail Direct Portal or for any damages, consequential or otherwise, arising therefrom or occasioned thereby. No proceedings shall be initiated by the Retail Direct Investor or any third party against Clearing Corporation or against any of its directors, managers, officers or employees of Clearing Corporation for any act of commission or omission done in discharge of their official functions.
  11. Clearing Corporation shall, in no way, be liable for any direct and/ or indirect damage, costs, claims and/or expenses whatsoever, in connection with:
    • Mechanical or electrical or network breakdown or power failure or hacking or malfunction of any of the servers or auxiliary equipment used by the Retail Direct Investor(s) and/ or any other cause beyond the reasonable control of Clearing Corporation.
    • Special direct/ indirect economic or consequential loss or damage including, but not limited to loss of profit, business revenue, opportunity costs, goodwill or anticipated saving.
    • Any event of a Force Majeure: Clearing Corporation shall not be responsible for any event of Force Majeure. For the purpose of this clause, “Force Majeure” means and includes wars, insurrections, revolution, fires, floods, epidemic quarantine restrictions, declared general strikes in relevant industries, Act of God, Act of the Government of India and/or any concerned State Government and any such other acts or events beyond the control of Clearing Corporation.
  12. Clearing Corporation and/ or the Retail Direct Investor may use the services of third party service providers (including regulated entities) for the purpose of execution of transactions, payments, etc. Clearing Corporation or its directors, managers, officers, employees or agents shall not be responsible for any scenarios involving disruptions, errors, frauds, etc. on the part of the third party service provider, providing services directly to the Retail Direct Investor, including for any loss or any damages, consequential or otherwise, arising therefrom or occasioned thereby. Clearing Corporation shall also not be a party to any disputes between the Retail Direct Investor and such third party service providers.
  13. Every Retail Direct Investor shall exercise due diligence, ensure proper care and exercise independent judgment with respect to all transactions undertaken and investments made by such Retail Direct Investor through the Retail Direct Portal and the Retail Direct Investor shall continue to be responsible for all such investments. Clearing Corporation shall not be held responsible or liable for any risks arising out of any investments made by the Retail Direct Investor through the Retail Direct Portal.
  14. Intellectual Property
    • The Retail Direct Portal may contain trademarks, service marks and trade names or any other form of intellectual property owned by RBI or the Clearing Corporation that are protected by applicable trademark and other intellectual property laws.
    • Retail Direct Investorsmay where permitted, view, download and print material for non-commercial personal use only. Without the prior written consent of the Clearing Corporation, RBI or any other rightful owner, the Retail Direct Investor shall not publicly display, perform, transmit, list, modify, reproduce, distribute, participate in the transfer or sale of, make derivative works from, upload or otherwise use any of the Intellectual Property contained on the Retail Direct portal or offered under the Scheme or the selection, arrangement or coordination of its content.
    • The Retail Direct Investor at all times shall, not delete, change or in any manner or fashion alter or enhance the existing intellectual property notices.
    • The Retail Direct Investor shall not assume anything on the Retail Direct Portal is necessarily in the public domain.
    • The Retail Direct Investor shall not post or use any information from the Retail Direct Portal for any advertising or solicitation for products or services without Clearing Corporations’ or RBI’s express prior written consent.
Activity Time Schedules
  1. Clearing Corporation shall from time to time notify cut-off timings for normal acceptance of trades from Retail Direct Investor(s) trading on the Retail Direct Portal.
  2. Clearing Corporation shall be authorised to make changes to the cut-off timings, as considered necessary from time to time, depending upon changes in market practices and/ or requirements of RBI and/ or other regulatory bodies/ agencies.