Revised Guidelines on Ready Forward Contracts in Corporate Debt Securities

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:

Rating

AAA

AA+

AA

Existing Minimum Haircut

10%

12%

15%

Revised Minimum Haircut

7.5%

8.5%

10%

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