RBI/2014-15/351
IDMD.PDRD.No.7/03.64.00/2014-15

December 15, 2014

To

All Standalone Primary Dealers

Dear Sir/Madam,

Decrease in Held to Maturity (HTM) limits for Standalone PDs

A reference is invited to our circular IDMD.PDRD.No.828/03.64.00/2013-14 dated September 10, 2013 and para 10.6 of ourMaster Circular IDMD.PDRD.01/03.64.00/2014-15 dated July 01, 2014 on Operational Guidelines to Primary Dealers regarding quantum of securities that can be classified as HTM.

2.  Taking into consideration prevailing market conditions, the quantum of securities that can be classified as HTM is being reduced from 200% to 100% of the audited NOF of the PD as at the end of the preceding financial year. The new limits will come into effect from December 31, 2014. PDs are allowed to effect one additional transfer from HTM for the current quarter ending December 31, 2014 to enable them to comply with the new norms.

Yours faithfully

(Rekha Warriar)
Chief General Manager