NEW DELHI, 04/30/2025: A general view of Bank of Baroda on Parliament Street in New Delhi on Wednesday. April 30, 2025. Photo: AMAN RAJ / INTERNAL | Photo credit: AMAN RAJ
The public sector bank said in a filing with the regulator that 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 the government securities (G-Sec) market and make it vibrant, liquid and broad-based; and ensure development of underwriting and market making capabilities for G-Sec outside the RBI.
Furthermore, the PDs are expected to improve the secondary market trading system, which would contribute to price discovery, increase liquidity and revenue, and encourage voluntary ownership of G-Sec among a broader investor base; and make them an effective channel for open market operations (OMO).
To give the PD system a broad base, banks were allowed to undertake PD activities by department in 2006–2007. Furthermore, the stand-alone PDs were allowed to diversify into business activities other than PD’s core activities under 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
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