Go Ad-Free
    My Alerts
    Moneycontrol
    Moneycontrol PRO
    HomeNewsBusinessCompaniesRBI relaxes norms for short-selling govt debt

    RBI relaxes norms for short-selling govt debt

    The Reserve Bank of India has allowed lenders to hold long and short positions in government bonds in their trading portfolios, and said they can short sell the securities only if they cover their positions through purchases in the market.

    June 21, 2012 / 21:14 IST

    The Reserve Bank of India has allowed lenders to hold long and short positions in government bonds in their trading portfolios, and said they can short sell the securities only if they cover their positions through purchases in the market.

    Earlier, banks used to go short in the held-for-trade portfolio and cover their positions by shifting out securities from the other portfolios - available-for-sale (AFS) and hold-to-maturity (HTM).

    While banks can hold securities for short-term trading in their HFT portfolios, they need to keep securities for a slightly longer period in AFS.

    first published: Jun 21, 2012 08:22 pm

    Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347