The Reserve Bank of India (RBI) will allow the standalone primary dealer's exposure limit to a qualifying central counter party (QCCP) for an over-the-counter derivative transaction, to be outside of the existing 25 percent limit of its net owned funds from April 1.
"With a view to promote central clearing of standardised OTC derivative products through a Central Counter Party (CCP), it has been decided that as an interim measure, a standalone PD's clearing exposure to a Qualifying CCP (QCCP) will be kept outside of the exposure ceiling of 25 per cent of its net owned funds applicable to a single borrower/counterparty," the RBI said in a statement on Thursday.
Copyright: Thomson Reuters 2014
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