SEBI/HO/MIRSD/MIRSD -PoD/P/CIR/2025/14 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/MIRSD/MIRSD -PoD/P/CIR/2025/14 To, All recognized Stock Exchanges Stock Brokers through Recognized Stock Exchanges Dear Madam / Sir, Sub: Facilitation to SEBI registered Stock Brokers to access Negotiated Dealing System-Order Matching (NDS-OM) for trading in Government SecuritiesSeparate Business Units (SBU) Reserve Bank of India vide its notification dated February 07, 2025 permitted access of SEBI -registered non-bank brokers to Negotiated Dealing System-Order Matching (NDS-OM) through Master Direction - Reserve Bank of India (Access Criteria for NDS -OM) Directions, 2025 . In order to facilitate SEBI -registered stock brokers to participate in Government Securities (G-Secs) market in the NDS-OM, it has been decided that they may do so under a Separate Business Unit (SBU) of the stock broking entity itself, in the manner specified herewith. The matters related to policy, eligibility criteria, risk management, investor grievances, inspection, enforcement, claims etc. for stock brokers to transact on NDS -OM would be specified under the regulatory framework issued by the respective regulatory authority and all activities of the business unit of stock broker facilitating trading on NDS-OM would be under the jurisdiction of that regulatory authority . In pursuance of the above regulatory jurisdiction, to demarcate the regulatory obligations and to ring fence the activities of the stock brokers and its NDS-OM activities, some of the key safeguards are being prescribed as under: 3.1 Stock brokers shall ensure that activities of the NDS -OM under a SBU are segregated and ring-fenced from the securities market related activities of the stock broker and arms -length relationship between these activities are maintained; February 11, 2025 3.2 Such SBU shall be e