Lending & Borrowing of G-Secs – Draft Directions issued

Brief Overview:

In the backdrop of adding depth and liquidity to the Government securities (“G-Secs”) market, the Reserve Bank of India has issued the draft directions on the G-Secs lending transactions.

Technical Details:

1)    Eligibility: Entity eligible to undertake repo transactions in G-Secs may participate as lender of securities. Entity eligible to undertake short sale transactions in G-Secs may participate as borrower of securities.

2)    Underlying: G-Secs issued by Central Government (excluding Treasury Bills).

3)    Collateral: G-Secs issued by Central Government (including Treasury Bills), and the State Governments.

4)    Tenure: To be undertaken for a minimum period of 1 day and a maximum period of 90 days.

5)    Reporting & Settlement: To be settled on a Delivery vs Delivery basis & reported on the CCIL.

6)    Documentation: To be entered into vide a standard bilateral master GSL agreement as per the documentation finalized by FIMMDA.

Comments on the draft directions are to be provided by 17th March 2023.

For further details, please see:


For any queries / clarifications, please feel free to ping us and we will be happy to chat:

Ms. Smrithi Nair (smrithi.nair@jclex.com)
Ms. Aashka Shah (aashka.shah@jclex.com)
Ms. Mahak Saboo (mahak.saboo@jclex.com)

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