The Insurance Regulatory and Development Authority of India (IRDAI) has issued a clarification on secondary market trading in Government Securities. The clarification was issued on 1st December, 2022.
IRDAI clarifies that all trades reported on Negotiated Dealing System – Order Matching (NDS-OM) platform shall be treated as compliant with the requirements of Para 4.11.3 of the Master Circular.
It may be recalled that IRDAI had notified its ‘Investments – Master Circular under the IRDAI (Investment) Regulations, 2016. This Master Circular was notified on 27th October 2022. Clause 4 of the Master Circular deals with Operational Procedures. Clause 4.11 specifically covers Negotiated Dealing System – Order Matching (NDS-OM). It states that all secondary market trading in Government Securities shall be placed via NDS-OM only.