Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: empanelment :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: cpt :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS
« Latest Circulars »
 Payment Systems - Next Orbit (Shri R. Gandhi, Deputy Governor - February 20, 2017 - at the launch of Bharat QR Code at Hotel Trident, Mumbai)
 Financing MSMEs: Banks & FinTechs – Competition, Collaboration or Competitive Collaboration? (Shri S. S. Mundra, Deputy Governor – February 20, 2017 – at the NAMCABS Seminar organized by College of Agricultural Banking in Mumbai)
 Issuance of Rupee denominated bonds overseas – Multilateral and Regional Financial Institutions as Investors
 RBI-Formation of twenty one new districts in the State of Telangana - Assignment of Lead Bank Responsibility
 RBI imposes penalty on Janata Urban Co-operative Bank Ltd., Wai, District Satara
 Monitoring of Foreign Investment under PIS in Indian Companies- Incorporation in Ban List–M/s HDFC Bank Ltd.
 Reserve Bank of India seeks Comments on Draft Circular on Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions
 Forward Rate Agreement (FRA) and Interest Rate Swap (IRS) - Withdrawal of Fortnightly return
 RBI-Foreign Investments in India
  RBI cancels the Licence of the Shri Chhatrapati Urban Co-operative Bank Ltd., Pimple Nilakh, Pune, Maharashtra
  Finance Minister meets the Directors of the RBI Central Board

Revised Guidelines on Ready Forward Contracts in Corporate Debt Securities
January, 08th 2013


January 7, 2013

To All Market Participants

Dear Sir/Madam,

Revised Guidelines on Ready Forward Contracts in Corporate Debt Securities

As part of the measures to develop the corporate bond market, repo transactions were permitted in corporate debt securities vide the Directions issued through the notification no IDMD.DOD. 04/11.08.38/ 2009-10 dated January 8, 2010 as amended vide notification no.  IDMD.PCD. 21/11.08.38/2010-11 dated November 9, 2010.

2. Taking into consideration the market feedback and suggestions of the Technical Advisory Committee on Money, Foreign Exchange and Government Securities Markets, the Directions have been reviewed and it has been decided as under:

  • Repo in corporate debt shall also be permitted on Commercial Papers, Certificates of Deposit and Non Convertible Debentures of less than one year of original maturity.

  • The minimum haircut, applicable on the market value of the corporate debt securities prevailing on the date of trade of 1st leg, has been revised as under:





Existing Minimum Haircut




Revised Minimum Haircut




The above are minimum stipulated haircuts where the repo period is overnight or where the remargining frequency (in case of longer tenor repos) is daily. In all other cases, the participants may adopt appropriate higher haircuts.

3. The Directions {Repo in Corporate Debt Securities (Amendment) Directions, 2013} issued in this regard vide IDMD.PCD. 08/14.03.02/2012-13 dated January 4, 2013 are enclosed.

Yours faithfully,

(K K Vohra)
Chief General Manager


Mumbai, January 4, 2013 
Repo in Corporate Debt Securities (Amendment) Directions, 2013

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 IDMD.DOD. 04 /11.08.38/2009-10 dated January 8, 2010 as amended from time to time, the Reserve Bank hereby makes the following further amendments to amend the Repo in Corporate Debt Securities (Reserve Bank) Directions, 2010 (hereinafter referred to as the said Directions) namely:

2. (i) In Paragraph 3 of the said Directions:-

(a) for sub paragraph (a), the following shall be substituted:

“(a)  Listed corporate debt securities of original maturity of more than one year which are rated ‘AA’ or above by the rating agencies, that are held in the security account of the repo seller, in demat form shall be eligible for undertaking repo; “

(b) and the following sub paragraph shall be added after sub paragraph (a):

“ (b) Commercial Papers (CPs), Certificates of Deposit (CDs) and Non-Convertible Debentures (NCDs) of less than one year of original maturity shall also be permitted as eligible security for undertaking repo in corporate debt. Listing requirement indicated in sub paragraph  (a) of this paragraph will not be applicable but rating requirement as specified shall apply also for these money market instruments to be eligible as security for undertaking repo in corporate debt.”

(ii)  In Paragraph 10 of the said Directions, for sub paragraph (a) the following shall be substituted:

“ (a) A rating based haircut as under (or higher as may be decided by the participants depending on the term of the repo and the remargining frequency) shall be applicable on the market value of the corporate debt security prevailing on the date of trade of 1st leg.”





Minimum haircut

7.5 %



3.    These Directions may be referred to as the Repo in Corporate Debt Securities (Amendment) Directions, 2013 and the modifications made therein shall be effective from January 8, 2013.

 (R Gandhi)
Executive Director

Ref. IDMD.PCD. 08 /14.03.02/2012-13

Note:- The principal notification No. IDMD.DOD.04/11.08.38/2009-10 dated January 8, 2010 was amended vide Notification No IDMD.PCD.21/11.08.38/2010-11 dated November 9, 2010.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions