Shriram Finance Seeks RBI Nod To Set Up Primary Dealership: Report

Shriram Finance Ltd. has approached the Reserve Bank of India for approval to set up a primary dealership, Bloomberg reported, citing people familiar with the matter.

The non-bank finance company plans to launch a separate entity for the purpose, the report said. A primary dealership licence would allow it to underwrite government debt.

Primary dealers are authorised by the RBI to underwrite and distribute government bonds, and help maintain adequate liquidity in the market. As of April 7, the total outstanding amount of government securities stood at ₹112.53 trillion, according to RBI data.