Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft
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: due date for vat payment :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARDS :: TDS :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARD
« Latest Circulars »
 Monitoring of Foreign Investment under PIS in Indian Companies – M/s The Byke Hospitality Limited - 1. Increase in FIIs/FPIs Investment limit under Portfolio Investment Scheme from 24% to 40% Removal from the FIIs/ FPIs Caution List
 RBI's Monthly Bulletin for July 2017
 Financial Action Task Force (FATF) Public Statement dated June 23, 2017
 All-India House Price Index (HPI) recorded marginal increase in Q4:2016-17
 Auction of Government of India Dated Securities July 17, 2017
 RBI-Interest rates for Small Savings Schemes
 Priority Sector Lending – Status, Issues and Future Agenda (Shri S S Mundra, Deputy Governor - June 27, 2017 - at the ”Conference on Credit flow to Priority Sector – Policy and Implementation” held at College of Agricultural Banking, Pune1)
 Audit Committee of the Board of Directors – Nomination of Non-Executive Chairman
 Investment in plant and machinery for the purpose of classification as Micro, Small and Medium Enterprises – documents to be relied upon
 RBI-Recording of Details of Transactions in Passbook/Statement of Account by Co-operative Banks
 Financial Literacy by FLCs (Financial Literacy Centres) and rural branches - Revision in funding limits, Audio-visual content and provision of hand held projectors

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