Introduction The system of PDs in the Government Securities (G-Sec) market was introduced in 1995 to strengthen the infrastructure in the G-Sec market, improve secondary market trading system, which would contribute to price discovery, enhance liquidity and turnover and encourage voluntary holding of G-Sec amongst a wider investor base and make PDs an effective conduit for conducting open market operations (OMO). The current guidelines to authorise PDs in the Indian G

To All RBI regulated entities (Commercial Banks, Co-operative Banks, Primary Dealers, Financial Institutions, RRBs and NBFCs) Dear Sir, Guidelines for accounting for Repo / Reverse repo transactions Please refer to our Circular IDMC.3810/11.08.10/2002-03 dated March 24, 2003 setting out uniform guidelines for accounting of repo/reverse repo transactions. These guidelines captured the character of repo/reverse repo transaction as outright sale and outright purchase as

1. Definition of a Derivative A derivative is a financial instrument: (a) whose value changes in response to the change in a specified interest rate, security price, commodity price, foreign exchange rate, index of prices or rates, a credit rating or credit index, or similar variable (sometimes called the 'underlying'); (b) that requires no initial net investment or little initial net investment relative to other types of contracts that have a similar response to chan

As announced in the Annual Policy Statement for the year 2005-06, it has now been decided that permitted structure of PD business will be expanded to include banks, which fulfill certain minimum criteria subject to safeguards. Accordingly, banks are eligible to apply for Primary Dealership, subject to the following guidelines. 2. The following categories of banks would be eligible to apply for PD license. (RBI's approval would be subject to compliance with all other r

Reserve Bank of IndiaExchange Control DepartmentIntroduction of Foreign currency-Rupee OptionsA draft circular on " Foreign currency-Rupee Options " is annexed herewith. Authorised Dealers may forward their comments to the Chief General Manager, Exchange Control Department. Forex Markets Division, Reserve Bank of India, Central Office, Mumbai 400 001, by FAX (022- 22611427), by 20th March 2003.A.RajalakshmiAsst. General ManagerDraft Circular for Comments Reserve Bank