The Reserve Bank of India issued the Master Direction on access criteria for the Negotiated Dealing System – Order Matching (NDS-OM), consolidating revised rules that enable non-bank brokers registered with the Securities and Exchange Board of India (SEBI) to provide retail clients access to the platform. The Directions supersede the October 2024 access criteria and apply with immediate effect. Eligible investors can access NDS-OM through direct access, indirect access, or the new “Stock Broker Connect” mechanism. Direct access remains available to banks, standalone primary dealers, non-banking financial companies (including housing finance companies), all-India financial institutions, mutual funds, provident and pension funds, insurance companies, and certain regulated market infrastructure institutions (as specifically permitted), subject to holding a Subsidiary General Ledger account, maintaining a current account with the Reserve Bank or a designated settlement bank, and being a member of the Clearing Corporation of India Limited (CCIL) securities settlement segment. Indirect access is available to eligible investors that are not eligible for, do not meet the requirements for, or are not granted direct access, via a direct-access entity that assumes settlement responsibility. For Stock Broker Connect, eligible investors are individuals with demat accounts with SEBI-registered depositories, while brokers must be SEBI-registered (subject to SEBI’s general or specific approval) and have an agreement with a CCIL clearing member to settle clients’ transactions. Applications for direct access and Stock Broker Connect are to be submitted to the Reserve Bank of India’s Financial Markets Regulation Department in the prescribed annex formats, with approvals being non-transferable and subject to suspension or termination in specified circumstances.

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