The Reserve Bank of India has issued the Master Direction – Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025, replacing all previous circulars on the subject. These Directions govern repo transactions in government securities, listed corporate bonds, commercial papers, certificates of deposit, Debt ETFs, and municipal debt securities undertaken on recognized stock exchanges, electronic trading platforms (ETPs), and the OTC market. Eligible participants include regulated entities, listed corporates, certain unlisted companies issued special securities by the Government of India, and All India Financial Institutions. Repo transactions can have a tenor ranging from one day to one year and must be settled on a Delivery versus Payment (DvP) basis.
Further, the Directions prescribe minimum haircuts 2% for corporate bonds and local authority securities, and 1.5% for CPs and CDs to ensure prudent collateral management. All transactions must be reported within 15 minutes to designated platforms (F-TRAC for corporate securities and CROMS for government securities). Repos in government securities are exempt from CRR/SLR computation, while those in corporate bonds are treated as liabilities for these purposes. Participants are required to use standard FIMMDA documentation or platform-specific agreements, and detailed accounting and disclosure norms to ensure consistency and transparency in repo market operations.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12920&Mode=0
