The Reserve Bank of India has today communicated that all participants shall report their repo trades in corporate bonds on the Fixed Income Money Market and Derivatives Association of India (FIMMDA) platform beginning August 02, 2010. Further, the participants shall continue to report their repo trades to the clearing corporations, i.e., National Securities Clearing Corporation Ltd. (NSCCL)/ Indian Clearing Corporation Limited (ICCL) for settlement on Delivery vs Payment-I  (DvP-I) basis.

It may be recalled that in terms of the Repo in Corporate Debt Securities (Reserve Bank) Directions, 2010 dated January 08, 2010 (which came into effect from March 01, 2010) participants were required to report their repo trades in corporate bonds within 15 minutes of the trade on FIMMDA Reporting Platform. They were required to report them to the clearing corporations of the exchanges, i.e., NSCCL or ICCL for settlement. The Directions were effective March 01, 2010. However, on March 23, 2010 the Reserve Bank of India clarified that the market participants should report their trades only to the clearing corporations, i.e., NSCCL and ICCL for settlement until the launch of the FIMMDA Reporting Platform. FIMMDA has now advised that their Corporate Bond Reporting Platform is now ready to accept repo trades in corporate bonds.

Alpana Killawala
Chief General Manager

Press Release : 2010-2011/ 97