The Reserve Bank of India (RBI) opened the door on thursday to foreign institutional investors (FIIs) using investments in corporate and government bonds as collateral in the futures and options segment of stock exchanges. The move announced by the RBI is expected to improve liquidity in the derivatives market. The RBI also said, it was permitting FIIs to use their investments in corporate bonds as collateral in the cash segment of the stock market.
News On AIR | March 15, 2013 8:38 AM
RBI nod for FIIs to use corporate bond investment as collateral in stock market