October 30, 2012
To All Market Participants
Ready Forward Contracts in Corporate Debt Securities – Permitting Scheduled Urban Cooperative Banks
A reference is invited to our circular IDMD.DOD.05/11.08.38/2009-10 dated January 08, 2010 enclosing the Repo in Corporate Debt Securities (Reserve Bank) Directions, 2010. As indicated under paragraph 4 of the Directions, the following entities are eligible to enter into ready forward contracts in corporate debt securities:
ii. Any housing finance company registered with the National Housing Bank; and
iii. Any insurance company registered with the Insurance Regulatory and Development Authority
2. As announced in the Second Quarter Review of the Monetary Policy Statement 2012-13 (para 77) and in exercise of powers conferred on Reserve Bank under the Repo in Corporate Debt Securities (Reserve Bank) Directions 2010, it has now been decided to permit scheduled Urban Cooperative Banks to undertake ready forward contracts in corporate debt securities subject to adherence to conditions prescribed by Urban Banks Department, Central Office, Reserve Bank of India, from time-to-time.
3. All other terms and conditions of the notifications issued vide circulars IDMD.DOD.05/11.08.38/2009-10 dated January 8, 2010 and IDMD.PCD. 22/11.08.38/2010-11 dated November 9, 2010 shall remain unchanged.
(K. K. Vohra)
Chief General Manager