Master Direction on Money Market Instruments
The Reserve Bank of India has issued a master direction on money market instruments, covering call/notice money market, commercial paper, certificates of deposit, and non-convertible debentures with original maturity up to one year.
The direction provides guidelines for participants, prudential limits, interest rates, dealing sessions, documentation, trading, and reporting requirements for the call/notice money market.
For commercial paper, the direction outlines eligibility criteria for issuance and investment, credit enhancement, limits, form of the instrument, mode of issuance and redemption, rating requirements, and documentation.
The direction also covers other aspects of money market instruments, including certificates of deposit and non-convertible debentures.
The master direction aims to provide a comprehensive framework for the money market, ensuring stability and efficiency in the financial system.
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