Last Updated: August 05, 2022, 11:18 IST
RBI Governor Shaktikanta Das stated standalone main sellers have performed an necessary position within the growth of monetary markets in India.
RBI has additionally enabled them to undertake transactions within the offshore rupee in a single day listed swap market with non-residents and different market makers
The Reserve Bank of India (RBI) on Friday determined to allow standalone main sellers (SPDs) to supply all overseas alternate market-making amenities as at the moment permitted to Category-I Authorised Dealers, topic to prudential tips. It additionally allowed them to undertake transactions within the offshore rupee in a single day listed swap (OIS) market with non-residents and different market makers.
While asserting the August bi-monthly financial coverage on Friday, RBI Governor Shaktikanta Das stated, “Standalone primary dealers have played an important role in the development of financial markets in India.”
The central financial institution has determined to allow SPDs to supply all overseas alternate market-making amenities as at the moment permitted to Category-I Authorised Dealers, topic to prudential tips. “This measure will provide customers with a wider set of market makers to manage their foreign currency risk. This will also increase the breadth of the forex market in India,” Das stated.
The RBI additionally allowed standalone main sellers (SPDs) to undertake transactions within the offshore rupee OIS market with non-residents and different market makers.
“This measure will supplement a similar measure announced in February this year for the banks. These measures are expected to remove the segmentation between onshore and offshore OIS markets and improve price discovery,” the RBI governor added.
The RBI’s Monetary Policy Committee on Friday unanimously determined to boost the repo charge by 50 foundation factors (bps) to five.4 per cent with instant impact whereas focussing on the withdrawal of lodging. It has additionally retained the inflation and GDP forecasts for the present monetary 12 months 2022-23 at 6.7 per cent and seven.2 per cent, respectively.
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