{"id":366637,"date":"2025-11-14T09:00:13","date_gmt":"2025-11-14T03:30:13","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=366637"},"modified":"2025-11-13T17:42:43","modified_gmt":"2025-11-13T12:12:43","slug":"rbi-repo-directions-2018-key-provisions","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/14\/rbi-repo-directions-2018-key-provisions\/","title":{"rendered":"RBI Issues Repo Directions: Key Rules on Eligible Securities, Participants, Reporting &amp; Settlement"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\">On 11-11-2025, the <span style=\"font-weight: bold;\">Reserve Bank of India<\/span> issued the <span style=\"font-weight: bold;\">Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018<\/span> to regulate the financial system of the country. The provisions came into effect on 11-11-2025.<\/p>\n<h3>Background:<\/h3>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p>Although the notification of this Direction is issued by the heading- <span style=\"font-weight: bold;\">Master Directions- Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025<\/span>, they will be called <span style=\"font-weight: bold;\">Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018.<\/span><\/p>\n<\/li>\n<li>\n<p style=\"font-weight: bold;\">These Directions supersede all other directions issued on this subject.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Applicable<\/span> to:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>repurchase transactions (Repo), undertaken on recognized stock exchanges, electronic trading platforms (&#8216;ETP&#8217;) and Over-the-Counter (&#8216;OTC&#8217;);<\/p>\n<\/li>\n<li>\n<p>exchange traded repurchase transactions (Repo), procedure for execution and settlement of trades will be in accordance with the rules and regulations issued by the recognized stock exchange\/Securities and Exchange Board of India.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">These Directions will not apply to<\/span> repo\/reverse repo transactions under the Liquidity Adjustment Facility and the Marginal Standing Facility.<\/p>\n<\/li>\n<\/ol>\n<h3>Key Provisions:<\/h3>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p><span style=\"font-weight: bold;\">Securities eligible for repo<\/span> will include:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Government securities issued by the Central Government or a State Government;<\/p>\n<\/li>\n<li>\n<p>Listed corporate bonds and debentures, subject to the condition that no participant shall borrow against the collateral of its own securities, or securities issued by a related entity;<\/p>\n<\/li>\n<li>\n<p>Commercial Papers and Certificate of Deposits;<\/p>\n<\/li>\n<li>\n<p>Units of Debt Exchange Traded Funds;<\/p>\n<\/li>\n<li>\n<p>Municipal Debt Securities.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p>Eligible participants in repo transaction:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Any regulated entity;<\/p>\n<\/li>\n<li>\n<p>Any listed corporate;<\/p>\n<\/li>\n<li>\n<p>Any unlisted company, which has been issued special securities by the Government of India, using only such special securities as collateral;<\/p>\n<\/li>\n<li>\n<p>Any All-India Financial Institution- Exim Bank, NABARD, NHB, Small Industries Bank of India and National Bank for Financing Infrastructure and Development, constituted.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p>Repos will be undertaken for a <span style=\"font-weight: bold;\">minimum period<\/span> of 1 day and <span style=\"font-weight: bold;\">a maximum period<\/span> of 1 year.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Trading of Repo transactions<\/span> can be doen on any recognized stock exchange, or on any electronic trading platform duly authorized by the Reserve Bank of India or on the over-the-counter market.<\/p>\n<\/li>\n<li>\n<p>Repo and tri-party repo trades can use any agreed method&#8212;bilateral, multilateral, quote- or order-driven, anonymous or not.<\/p>\n<\/li>\n<li>\n<p>All repo trades not done on recognized exchanges or approved platforms must be reported within 15 minutes:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Government securities- Clearcorp Repo Order Matching System (CROMS);<\/p>\n<\/li>\n<li>\n<p>Other eligible securities- FIMMDA Trade Reporting and Confirmation System (F-TRAC).<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"font-weight: bold;\">Settlement of Trades:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>First leg of all repo transactions will settle either on a T+0 or T+1 basis;<\/p>\n<\/li>\n<li>\n<p>All repo transactions will settle on a <span style=\"font-weight: bold;\">Delivery versus Payments<\/span> (DvP) basis;<\/p>\n<\/li>\n<li>\n<p>All repos in government securities will settle through Clearing Corporation of India Limited or any other clearing agency approved by the Reserve Bank;<\/p>\n<\/li>\n<li>\n<p>All repos in other eligible securities will settle through the clearing house of exchanges or any other entity which has been approved by the Reserve Bank.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"font-weight: bold;\">Pricing of collateral, haircut and margining:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p style=\"font-weight: bold;\">Collateral Pricing:<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#10003; <span style=\"font-weight: bold;\">First leg:<\/span> priced at current market value;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#10003; <span style=\"font-weight: bold;\">Second leg:<\/span> first leg price + interest.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Haircuts\/ Margins:<\/span> It will be decided by clearing house or agreed bilaterally, subject to:<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#10003; <span style=\"font-weight: bold;\">Listed corporate bonds\/debentures:<\/span> minimum 2% (extra for tenor\/illiquidity);<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#10003; <span style=\"font-weight: bold;\">Commercial Papers and Certificate of Deposit:<\/span> minimum 1.5%.;<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">&#10003; <span style=\"font-weight: bold;\">Local authority securities:<\/span> minimum 2% (extra for tenor\/illiquidity).<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">These Directions regulate repo transactions across recognized exchanges, electronic platforms, and OTC markets, specifying eligible securities, participants, reporting timelines, settlement norms, and haircut requirements.<\/p>\n","protected":false},"author":67515,"featured_media":366639,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[92602,92603,2732],"class_list":["post-366637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-repurchase-transactions","tag-repurchase-transactions-repo","tag-Reserve_Bank_of_India"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 | SCC Times<\/title>\n<meta name=\"description\" content=\"RBI issued Repo Directions 2018 effective 11-11-2025, detailing rules on eligible securities, participants, reporting, settlement, and haircut norms.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/14\/rbi-repo-directions-2018-key-provisions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RBI Issues Repo Directions: Key Rules on Eligible Securities, Participants, Reporting &amp; 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