Home
Finance Resources
Investment Planning
Banking
Finance
Stock Market
Futures & Options
Trading
Mutual Funds
Insurance
Taxation
Enquire
Home » Finance Current Affairs » RBI draft norms for repo deals in corporate bonds

RBI draft norms for repo deals in corporate bonds

Current Affairs

HTML clipboard

Taking forward the agenda for developing the corporate bond market, the Reserve Bank of India said it initially intends to allow repo transactions in only listed securities like non-convertible debt, debentures and bonds rated AA+ and above.

Commercial Papers (CPs), Certificates of Deposit (CDs) and other instruments including non-convertible debentures with less than a year of residual/original maturity, will not be eligible for repo deals, RBI said in its draft guidelines.

A repo is a contract in which the seller of securities agrees to repurchase at a specified time and price. It may only be done with securities already in the security account of the repo seller.

RBI said commercial banks, registered non-banking finance companies, Exim Bank, Nabard, Sidbi, mutual funds, housing finance companies and insurance companies would be eligible to enter into repo transactions.

Dealers said this will be one tool to provide liquidity. Mutual funds may not be face a tight liquidity situation like the one they had to go through in September-October 2008 after the US collapse of Lehman Brothers.

RBI proposed that repos in corporate debt securities will be permitted for a minimum period of a day and a maximum period of a year. The trading would be on an over-the-counter basis.



More Current Affairs


put comment
Domain Registration | Windows Hosting | Linux Hosting | Java Hosting | Virtual Dedicated Server | Dedicated Server | Reseller Web Hosting | Unlimited Windows reseller hosting | Unlimited Linux reseller hosting | Cheap Windows reseller hosting | Cheap Linux reseller hosting | Cheap Windows hosting | Best Windows hosting | Windows hosting Multiple Domains | Unlimited Windows hosting | Compare hosting plans | Cheap Linux hosting | Best Linux hosting | Linux hosting Multiple Domains | Unlimited Linux hosting | Cheap asp.net hosting | Best asp.net hosting | unlimited asp.net hosting | Cheap asp.net reseller hosting | Unlimited asp.net reseller hosting | Java Features | Cheap Java hosting | Best Java hosting | unlimited Java Hosting | Unlimited Linux reseller hosting | Java Hosting Multiple Domains| | Matargashti Full Song | Matargashti mp3 Download | Matargashti Video Download | Matargashti Song Tamasha | Prem Ratan Dhan Payo Songs Download | Prem Ratan Dhan Payo Songs mp3 Download | Prem Ratan Dhan Payo Songs Video Download | Pinga Song Download | Pinga Full Song mp3 Download | Pinga Song mp3 Download | Pinga Song Video Download | Latest Bollywood Updates | Bollywood Updates | Prem Ratan Dhan Paayo Songs Download|
© ProfitGuruOnline-2024. All Rights Reserved.