Gsec Trading And Different Operation Flashcards
Open market operations
RBI carries OMO for objective of rupee liquidity conditions
Sale of securities sucking liquidity
Right liquidity then release the securities
Buyback of gsecs
Objectives for
Reducing the cost
Reducing the securities to increase the liquidity
Liquidity adjustment facility
RBI to commercial banks excluding RRBs
Repor and reverse repo for availing or parking excess funds
When demat form mass compulsoty
May 2002
Trading in Gsec secondary markets
Negotiated dealing system - order matching NDS-OM
Over the counter
NDS-OM web
Stock exchange
NDS-OM when and who manages it
Aug 2005, by RBI, now operated by CCIL on behalf of RBI
Over the counter
Through telephones, and deals to be reported to reported segment of NDS-OM within 15 mins
NDS OM web
By RBI on June 2012 for direct participation of Gilt Account Holders through their primary members
Stock exchanges
SEBI asked to create dedicated debt segment
Value free transfer
From one SGL/ CSGL to another account
Settlement
CCIL becomes counterparty for sexondary markets
Repos can be settled on T or T+1 days
CPI can settle on T+1 or T+2 dats
Shut period
Period when no trading happens. Current SGL is 1 day
It is to facilitate finalizing the payment of maturity redemptions
Delivery vs payment settlement
Both delivery and payment happen simultaneously to avoid settlement risk
DvP1- on gross basis transaction basis
DvP2- securities on gross basis and funds on net basis
DvP3- both happens on net basis
