RBI/2016-17/48
FMRD.DIRD.5/14.01.009/2016-17
August
25, 2016
To All Market Participants
Dear Sir/Madam,
Repo / Reverse repo in Corporate
Debt Securities
A reference is invited to our circular FMRD.DIRD.04/14.03.002/2014-15 dated February
3, 2015 enclosing the Repo in Corporate Debt Securities
(Reserve Bank) Directions, 2015.
2. It has now been decided to
permit brokers registered with the Securities and Exchange Board of India
(SEBI) and authorised as market makers in corporate bond market to
undertake repo / reverse repo contracts in corporate debt securities
subject to the Directions ibid.
3. The Repo in Corporate Debt
Securities (Amendment) Directions 2016 issued in this regard vide
FMRD.DIRD.4/14.01.009/2016-17 dated August 25, 2016 are enclosed.
Yours
faithfully,
(R.
Subramanian)
Chief General Manager
RESERVE BANK OF INDIA
FINANCIAL MARKETS REGULATION DEPARTMENT
CENTRAL OFFICE
FORT MUMBAI 400 001
Mumbai,
August 25, 2016
Repo
in Corporate Debt Securities (Amendment) Directions, 2016
In exercise of the powers
conferred by Section 45 W of the Reserve Bank of India Act, 1934 and in
partial modification of the notification No
FMRD.DIRD.03/14.03.002/2014-15 dated February 3, 2015, the Reserve
Bank hereby makes the following amendments in the Repo in Corporate Debt
Securities (Reserve Bank) Directions, 2015 dated February 3, 2015
(hereinafter referred to as the said Directions) namely:
2. In paragraph 4 of the said
Directions, for item (g), the following shall be substituted, namely:
“i. Any mutual fund registered
with the Securities and Exchange Board of India (SEBI);
ii. Any broker registered with
SEBI and authorised as market maker in corporate bond market;
iii. Any housing finance company
registered with the National Housing Bank; and
iv. Any insurance company
registered with the Insurance Regulatory and Development Authority of
India.”
3. These directions may be
referred to as the Repo in Corporate Debt Securities (Amendment)
Directions, 2016.
(R.
Subramanian)
Chief General Manager
Ref. FMRD.DIRD.
4/14.01.009/2016-17
Note: The principal notification No. IDMD.DOD.04/11.08.38/2009-10 dated
January 8, 2010 was amended vide following:
i.
Notification No IDMD.PCD.21/11.08.38/2010-11 dated November 9,
2010.
ii.
Notification IDMD.PCD. 08 /14.03.02/2012-13 dated January 7,
2013
iii.
Notification FMRD.DIRD.03/14.03.002/2014-15 dated February 3,
2015
iv.
Notification FMRD.DIRD.07/14.03.002/2014-15 dated May 14, 2015
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