We are in the process of revamping capital adequacy standards of standalone primary dealers on lines of Basel III framework. Collateral requirements reduce counterparty risk in market transactions. The international consensus on sound regulation for OTC derivatives as articulated by G20 declaration for moving these derivatives to central clearing and mandatory posting of margins emphasizes the importance attached to collateral.
8 It was the October and November consumer price index (CPI) reports that showed that the deceleration of inflation from April to September was short lived and year-overyear inflation had topped 6 percent. It became clear that the high inflation realizations were not as temporary as originally thought.