what is the negotiated dealing system nds 
the negotiated dealing system or nds is an electronic trading platform operated by the reserve bank of india rbi to facilitate the issuing and exchange of government securities and other types of money market instruments the goal of the nds was to reduce inefficiencies stemming from telephone orders and manual paperwork while increasing transparency for all market participants understanding the negotiated dealing systemthe negotiated dealing system was introduced in february 2002 to help the reserve bank of india or rbi enhance the dealings of fixed income investments while the rbi owns the nds it is administered by the clearing corporation of india ltd ccil prior to the nds the country s government securities market was primarily telephone based which meant that buyers and sellers had to place trades over the phone submit physical subsidiary general ledger transfer forms and issue checks for the settlement of funds to the reserve bank of india these slow and inefficient procedures led to the development and implementation of the nds in august 2005 the rbi introduced the negotiated dealing system order matching system or nds om an electronic screen based anonymous order driven trading system for dealing in government securities the system is designed to bring transparency to secondary market transactions while enabling members to place bids and offers directly on the nds om screen 