After successfully introducing the electronic order-matching system for trading of gilts and Treasury bills, the Reserve Bank of India (RBI) is now considering launching a new electronic platform for the auction of T-bills, along the lines of the NDS-OM.
The Clearing Corporation of India (CCIL) Ltd and Tata Consultancy Services (TCS) have built this platform. The introduction of the new primary auction module comes in wake of the numerous complaints received by the market participants, who have faced problems of system failures while bidding for the gilts and T-bill auctions. Sometimes they had to rush to the RBI's office to physically submit the bids. The new system is a definite improvement over the existing system and has been approved by the money market participants who saw the demonstration by CCIL on February 1, 2006. As a step towards the development and upgradation of the trading and auction system, the new module would be equipped with closed bidding system, wherein multiple bids are permitted by a member, but not at the same price.