The RBI operates the government bond market, and therefore acts as monetary authority and debt manager, as well as regulator of the government bond market and its key participants— primary dealers and banks. 6 Other participants are regulated by SEBI, the Insurance Regulatory and Development Agency (IRDA), or the Provident Fund regulator. New securities are issued by auction, with primary dealers required to participate. Trading is a mix of OTC bilateral negotiation and an order matching system. Banks and primary dealers are the main participants, but other investors have access to trading. Some limited retail trade occurs on the stock exchanges. Bond.
