Archive · 9 Jan 2026
Bank of Baroda to form subsidiary for primary dealership business
Bank of Baroda, a big bank in India, has gotten permission from the country's central bank, the RBI, to move its government bond dealing work to a new company it owns completely.
This new company will focus only on this work.
The RBI started this system in 1995 to make the government bond market more active and liquid.
Currently, there are 7 standalone and 14 bank primary dealers in India.
Bank of Baroda's move is subject to more approvals.
This change is expected to make the bond market more vibrant and help with price discovery and liquidity.
Bank of Baroda received in-principle approval from RBI to transfer its primary dealer authorization to a wholly-owned subsidiary.
The new subsidiary will focus on standalone primary dealer (SPD) business, subject to further regulatory approvals.
RBI introduced the PD system in 1995 to strengthen the government securities market and improve liquidity.
Currently, there are 7 standalone and 14 bank primary dealers in India.
The move aims to broad base the PD system and enhance the secondary market trading system.
- Who
- Bank of Baroda (BoB)
- What
- Received in-principle approval from RBI to transfer primary dealer authorization to a wholly-owned subsidiary
- When
- January 9, 2026
- Where
- India
- Why
- To undertake standalone primary dealer (SPD) business and broad base the PD system
- Company
- Bank of Baroda (BoB)
- Approval Received
- In-principle approval from RBI
- Purpose
- Transfer existing authorization as a bank primary dealer to a wholly-owned subsidiary
- Current Primary Dealers
- 7 standalone and 14 bank PDs
- RBI's Role
- Introduced PD system in 1995 to strengthen G-Sec market
- Regulatory Filing
- SPD Business establishment subject to other regulatory approvals
- Date
- January 9, 2026