Reserve Bank of India to deepen retail market

Reserve Bank of India (RBI) governor Shaktikanta Das on Tuesday spoke of measures to extend retail participation while he hinted at preparations to standardize the liquidity pumped into markets within the wake of the pandemic.

“As markets settle right down to normal timings and functioning and liquidity tasks standardize, the RBI may likewise lead adjusting activities now and then as needed to deal with unforeseen and one-off liquidity streams all together that fluid conditions inside the framework develop in a reasonable and evenly distributed method,” Das expressed.

He was delivering the keynote tackle on the annual show organized by the Fastened Earnings and Cash Market Derivatives Affiliation (FIMMDA) and the Major Sellers Affiliation of India (PDAI).

Das additionally stated that the RBI will work with major sellers to popularize STRIPS Separate Buying and selling of Registered Curiosity and Principal of Securities. This can be a system that might allow transformation of presidency securities into zero-coupon bonds the place a lump sum is paid on maturity. This will probably be one of many measures by the RBI to develop a retail marketplace for government securities.