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The Reserve Bank of India (RBI) on Tuesday said all over-the-counter credit default swaps (OTC-CDS) transactions should be reported within 30 minutes of the transactions to the trade repository, clearly marking the purpose of the transaction, whether it’s for hedging or not. The trade repository will be run by the Clearing Corporation of India Ltd. (CCIL). In case a market participant assigns a CDS contract to any other market participant, the market-maker in the assigned contract shall report such assignment to the trade repository of CCIL, the RBI said in a draft guideline on CDS released on its website. Participants in the credit derivatives market will be obliged to furnish any information relating to credit derivatives transactions to the Reserve Bank or any other agency as may be specified by the RBI.
FPIs shied away from G-Secs in 2020 on weak economic outlook and falling interest rates
January 03, 2021
Utilisation against limit for investment in govt securities plunged to 42.05%
Foreign portfolio investors (FPIs) reduced their exposure to government securities (G-Secs) during 2020 amid deteriorating fiscal position and falling interest rates.
According to Clearing Corporation of India Ltd (CCIL) data, FPIs’ total investments in G-Secs as on December 31, 2020 stood at ₹98,610 crore, accounting for 42.05 per cent of the total available limit of ₹2.35-lakh crore. In contrast, as on December 31, 2019, they had stood as high as 75.56 per cent of the total limit of ₹2.46-lakh crore.
“The Indian debt market has experienced the highest outflows in over two decades as foreign institutional investors (FII/FPI) have sold sovereign bonds this year (2020) largely on account of uncertain domestic economic outlook, weakening rupee, low interest rates and higher fiscal deficit d