OTC interest rate derivatives like IRS/ FRAs were introduced. •  Outright sale of Central Government dated security that are not owned have been permitted, subject to the same being covered by outright purchase from the secondary market within the same trading day subject to certain conditions.
BIS Review 51/2007  21  •  Repo status has been granted to State Government securities in order to improve secondary market liquidity. Enabling measures •  Foreign Institutional Investors (FIIs) were allowed to invest in government securities subject to certain limits. •  Introduction of automated screen-based trading in government securities through Negotiated Dealing System (NDS).