The Hindu Business Line : RBI fiat on short selling of gilts

Banks or Primary Dealers cannot accumulate a short position in any security in the HFT (held-for-trading) category in excess of 0.25 per cent of the total outstanding stock issued of each security.

"Banks and PDs, which undertake short sale transactions, shall mark-to-market their entire HFT portfolio, including the short positions, on a daily basis and account for the resultant mark-to-market gains or losses, " said an RBI statement.

"The short sale position initiated today will have to be covered on or before the close of the fifth day. It may be noted that such short positions shall be covered only by outright purchase of an equivalent amount of the same security. The short positions may be reflected in Securities Short Sold (SSS) account specifically created for this purpose," said the RBI statement. According to the notification, the transaction shall be executed only on the Negotiated Dealing System - Order Matching platform. If an entity fails to deliver, the banks or PDs will be penalised.

More Stories on : Debt Market | RBI & Other Central Banks | Govt Bonds

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee gains marginally

`Rate hike will check demand pressures'

PNB net up 16% in Q3

Lakshmi Vilas Q3 net up 61%

Home loans unaffected for the moment

Co-operative bank to provide housing loans to Bengal Govt staff

RBI fiat on short selling of gilts

RBI hikes repo rate by 25 bps

PNB to trim Govt stake to 51%

`Telecom sector has a key role in achieving financial inclusion'

S&P upgrades IRFC rating

Bond prices rally by over a rupee

Call rates close higher

Panel to take up transfer of RBI stake in SBI, Nabard today