ENHANEMENT OF STANDALONE PRIMARY DEALERS’ (PDS) ROLE IN CORPORATE DEBT MARKET

Notification No.: RBI/2012-13/405

Date: 30/01/2013

With a view to enhance standalone Primary Dealers’ (PDs) role in corporate debt market, it has been decided to: 

1.   Allow PDs a sub-limit of 50% of net owned funds for investment in corporate bonds within the overall permitted average fortnightly limit of 225 per cent of NOF as at the end of March of the preceding financial year for call /notice money market borrowing.

2.   Permit PDs to invest in Tier II bonds issued by other PDs, banks and financial institutions to the extent of 10 per cent of the investing PD’s total capital funds.

3.   Permit PDs to borrow to the extent of 150% of NOF as at the end of March of the preceding financial year through Inter Corporate Deposits. 

PERMISSION TO STANDALONE PRIMARY DEALERS (PDS) FOR MEMBERSHIP IN SEBI APPROVED STOCK EXCHANGES FOR TRADING IN CORPORATE BONDS

Notification No.: RBI/2012-13/412

Date: 06/02/2013

With a view to further developing the debt market in India, it has been decided to:-    

1.   permit standalone Primary Dealers (PDs) to become members of SEBI approved stock exchanges for the purpose of undertaking proprietary transactions in corporate bonds. 

While doing so, standalone PDs should comply with all the regulatory norms laid down by SEBI and all the eligibility criteria/rules of stock exchanges.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769

Website:- www.caaga.co.in