Primary Dealer

A primary dealer is a financial institution—typically a bank or large brokerage—that is authorised by the Reserve Bank of India (RBI) to participate directly in government securities auctions and is obligated to maintain a minimum bid commitment in each auction. Primary dealers act as market makers in the government bond market, providing liquidity by quoting two-way prices for G-Secs in the secondary market. In India, both bank-based and standalone primary dealers (like STCI Primary Dealer and PNB Gilts) play a critical role in supporting the government's borrowing programme and deepening the domestic bond market.