The full form of NDS is Negotiated Dealing Systems

The Negotiated Dealing System, or NDS, is an electronic trading platform operated by the Reserve Bank of India to facilitate the issuing and exchange of government securities and other types of money market instruments. The goal was to reduce inefficiencies stemming from telephone orders and manual paperwork, while increasing transparency for all market participants.

The Negotiated Dealing System was introduced in February 2002 to help the Reserve Bank of India, or RBI, enhance the dealings of fixed income investments. 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.