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'NSE goBID' App
Why is it in the news?
- The National Stock Exchange (NSE) has launched an app and web-based platform, ‘NSE goBID’, for retail investors to buy government securities.
More about the App
- Sebi chairman Ajay Tyagi launched the new app which would be available to all the registered investors with NSE’s trading members.
- The app would allow investors to invest in treasury bills (T-Bills) of 91 days, 182 days and 364 days and various government bonds from one year to almost 40 years.
- The retail investors would be able to make payment directly from their bank accounts using Unified Payments Interface (UPI) and Internet banking.
- The App is considered to be a milestone at a time when India is seeing surge in digital payments.
- The launch assumes significance as government securities are among the safer investment options available to retail investors.
- According to the SEBI chairman, It is necessary to extend this technology for improving the penetration of the capital markets.
About Treasury Bills
- These are government bonds or debt securities with maturity of less than a year.
- Treasury bills are issued when the government need money for a shorter period while bonds are issued when it need debt for more than say five years.
- T- bills are issued to meet short-term mismatches in receipts and expenditure. Bonds of longer maturity are called dated securities.
Source
The Hindu.