About us
Profile
PDAI that is Primary Dealers’ Association of India (“the Association”) was incorporated on December 22, 1997 under the provisions of Section 25 of the Companies Act, 1956 and having no share capital but it is a Company limited by guarantee.
The main objects for which the Association is established are :
- To encourage and promote a friendly feeling among primary dealers to serve their common interest and further the interests and regulate the dealings of and between the Dealers in Government securities i.e. any person/institution authorized by Reserve Bank of India (RBI) to function as a Primary dealer or as a satellite dealer in government securities both inter-se, and with the public, brokers, the Reserve Bank of India and other bodies and to promote protect and represent the interests of members
- To render where possible such advice or assistance and provide common services and utilities as may be deemed necessary or expedient to members and other persons engaged in government securities business and financial services and consider all questions connected with the business usually carried on by dealers
- To promote high standards of commercial practice and encourage and promote among members and others the observance of legal and regulatory requirements including regulations and directives issued from time to time by Reserve Bank of India and function in the best of interest of the dealers and the market and to promote and develop sound, progressive and professional standards and principles, practices and conventions in the activities of securities dealing
- To promote the establishment of a sound policy and practices in government securities market in co-operation and in consultation with the Reserve Bank of India and to such end to regulate government securities business by framing rules and code of conduct from time to time with the prior approval of the Reserve bank of India and to conduct and establish just and equitable principles in government securities business
- To promote, sponsor and actively support programmes and to take action including submitting memoranda, representations and campaigns necessary for promotion and development of gilts and financial services market, to undertake and shoulder the responsibilities for coordinating, organising and bringing together persons engaged in the gilts market and financial services.
PDAI was formed as an Association for the Primary Dealers (PDs) accredited by Reserve Bank of India to represent their interests and evolve suitable market practices for the participants which is essential for proper functioning and healthy development of the market. The Association provides a platform for addressing issues of common interest and benefit to its fraternity and seeks to establish itself as a Self Regulatory Organisation. The Association commenced its activities initially with six PD members which has since grown to twenty one.
PDAI has been playing a pivotal role in the development of fixed income markets and it is taking an active interest in furthering the orderly development of government securities market in India. PDs were formed in India to act as catalyst to develop an active market in G-Secs (Government Bonds or Securities). PDs are responsible for providing liquidity in the market in their role as market makers and also to act as underwriters for public debt. This has ensured that there is an active continuing market for G-Secs in the country.