Satellite Dealer

Satellite Dealer is a financial institution authorised by the Reserve Bank of India (RBI) to retail government securities, acting as a second-tier market participant to cater to retail investors.

Role of Satellite Dealer in the Market:

• Satellite Dealers collaborate with Primary Dealers, forming the second tier of the government securities market. They serve retail investors seeking to invest in these securities.
• The financial institution must have a valid letter of authorisation from the RBI, per the "Guidelines for Satellite Dealers in Government Securities Market.

Purpose:

• The RBI introduced the system of Satellite Dealers to strengthen the securities market infrastructure and improve the secondary market trading system, particularly for government securities.