Corporate bonds and Government securities as collateral

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..... lar Nos. SEBI/DNPD/Cir- 32/2007 dated September 11, 2007 and CIR/MRD/DP/15/2010 dated April 28, 2010 permitting FIIs to offer, as collateral, cash and foreign sovereign securities with AAA rating in F O segment and cash, foreign sovereign securities with AAA rating and government securities in cash segment. 2. The Hon ble Finance Minister, in his announcement in the Union Budget for the year 20 .....

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..... O segments. In this regard, the stipulations specified by SEBI and RBI with regard to the acceptance of various collaterals shall be adhered to. 5. Further, Clearing Corporations while enabling the framework for acceptance of corporate bonds as collateral for transactions of any entity in the cash and F O segments, shall ensure that: i) The bonds shall have a rating of AA or above (or with s .....

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..... the above decision. b. bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange/Clearing Corporation and also to disseminate the same on the website. c. communicate to SEBI, the status of the implementation of this circular in the Monthly Development Report. 8. This circular is being issued in exercise of powers conferred under Section 11 .....

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