NEW DELHI, 30/04/2025: A general view of Bank of Baroda at Parliament Street in New Delhi on Wednesday. April 30, 2025. Photo: AMAN RAJ / INTERN
| Photo Credit:
AMAN RAJ
Bank of Baroda (BoB) on Friday said it has received in-principle approval from the Reserve Bank of India (RBI) to its request to transfer existing authorization as a bank primary dealer to a proposed wholly owned subsidiary for undertaking standalone primary dealer (SPD) business.
The public sector bank, in a regulatory filing, said the SPD Business will be established subject to other regulatory approvals.
The RBI introduced the system of Primary Dealers (PDs) in 1995 to strengthen the infrastructure in government securities (G-Sec) market to make it vibrant, liquid and broad based; and ensure development of underwriting and market making capabilities for G-Sec outside the RBI.
Further, the PDs are expected to improve secondary market trading system, which would contribute to price discovery, enhance liquidity and turnover and encourage voluntary holding of G-Sec amongst a wider investor base; and make them an effective conduit for open market operations (OMO).
In order to broad base the PD system, banks were permitted to undertake PD business departmentally in 2006-07. Further, the standalone PDs were permitted to diversify into business activities, other than the core PD business, subject to certain conditions.
Currently, there are 7 SPDs, including SBI DFHI, ICICI Securities Primary Dealership, PNB Gilts, STCI Primary Dealer, and 14 Bank PDs, including Bank of Baroda, Canara Bank, Union Bank of India and IDBI Bank.
Published on January 9, 2026
