FIIs can offer G-secs, corp bonds as collateral in F&O segment
Quotes

FIIs can offer G-secs, corp bonds as collateral in F&O segment

Last Updated: Thursday, March 14, 2013, 22:27
 
 Comment 1
 
FIIs can offer G-secs, corp bonds as collateral in F&O segment
Mumbai: The Reserve Bank of India Thursday allowed foreign institutional investors to offer their investments in government securities and corporate bonds as collateral to stock exchanges for derivatives transactions.

However, in the cash segment, FIIs can use their investment in corporate bonds as collateral other than already permitted collaterals.

"On a review, it has been decided in consultation with the Government of India and the Securities and Exchange Board of India (SEBI), to permit FIIs to use, in addition to already permitted collaterals, their investments in corporate bonds as collateral in the cash segment and government securities and corporate bonds as collaterals in the F&O (futures and options) segment," RBI said in a notification.

The operational guidelines in this regard will be issued separately by SEBI, it said.

With the proposed changes coming into effect, FIIs will be eligible to offer government securities/corporate bonds acquired by FIIs cash and foreign sovereign securities with AAA ratings in both cash and F&O segments, it said.

PTI



First Published: Thursday, March 14, 2013, 22:27


Comments


comments powered by Disqus
G20 Summit 2014
G20 Summit 2014
2014`s Top People in Business: Fortune
2014`s Top People in Business: Fortune
World Bank`s Top 10 Places for Business
World Bank`s Top 10 Places for Business
India`s top ten billionaires
India`s top ten billionaires
Top 10 billionaire cities- In Pics
Top 10 billionaire cities- In Pics

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved