MUMBAI, March 14 (Reuters) - India's central bank opened the
door on Thursday to foreign institutional investors (FIIs) using
investments in corporate and government bonds as collateral in
the futures and options segment of stock exchanges.
The move announced by the bank is expected to improve
liquidity in the derivatives market, one foreign bank dealer
The Reserve Bank of India also said it was permitting FIIs
to use their investments in corporate bonds as collateral in the
cash segment of the stock market.
The RBI also mandated banks to report all over-the-counter
currency derviative deals with clients on the central bank
promoted reporting platform known as the Clearing Corp of India
Ltd (CCIL) from April 2, it said in a separate circular.
This will improve transparency and provide a better guage to
the central bank on the extent of derivative exposure that
corporates have, a senior official at CCIL said.
(Reporting by Suvashree Dey Choudhury; editing by Patrick