To widen the participant base in corporate bond repo market, Scheduled Urban Cooperative banks have been permitted to participate in the instrument. To encourage activity in corporate bond repo, eligible category of collateral has been expanded to include short term instruments like CPs, CDs and NCDs and minimum haircut requirement has been further reduced.
There is, however, no activity in the corporate bond repo markets. Progress in signing Global Market Repo Agreement (GMRA) is slow. I request FIMMDA to advise its members to sign GMRA to enable trading in corporate bond repo. In case the progress continues to be slow, Reserve Bank would examine the option of mandating signing of GMRA as a market development measure.