Name change: CCIL is now Trade Repository

The Clearing Corporation of India Limited (CCIL) is now designated as ‘Trade Repository’ for the OTC interest rate and Foreign Exchange Contract.  The  designated trade repository will  be regulated and supervised under section 34(2) of Payment and Settlement Systems Act, 2007 (PSS Act).  Being a Financial Market Infrastructure (FMI), the repository would function under “Regulation…

Meaning of Dirty Float

The Central Bank (RBI in India) sometimes intervenes in the volatile foreign exchange market in order to manage excessive volatility and to influence the value of a floating currency in an orderly condition. Such intervention of Central bank is called “Dirty Float”. The recent communication of the regulator informs that the bank would intervene in…

Rescheduling or Restructuring of External Commercial Borrowings (ECB)

The Reserve Bank of India has relaxed rules for rescheduling/restructuring of ECBs by permitting an increase in the total cost of borrowing offshore. In suppression of earlier provisions, this year the banking regulator has delegated powers to the designated AD category-I banks to allow changes/modification in the draw-down and repayment schedules notwithstanding the average maturity period or…