Master Direction – Standalone Primary Dealers (Reserve Bank) Directions, 2016
This Master Direction outlines the guidelines for Standalone Primary Dealers (SPDs) in India, effective from August 23, 2016, with subsequent updates.
Applicability: These directions apply to all SPDs registered with the Reserve Bank of India (RBI).
Regulatory Structure: The RBI has introduced a scale-based regulation for Non-Banking Financial Companies (NBFCs), which includes SPDs.
Definitions: The direction provides definitions for key terms, including residual maturity of instruments and rate of discount.
Registration: SPDs are required to register with the RBI and comply with the prescribed capital requirements.
Prudential Issues: The direction outlines prudential norms for SPDs, including capital funds and capital requirements.
Investment from FATF non-compliant jurisdictions: SPDs are prohibited from accepting investments from jurisdictions non-compliant with the Financial Action Task Force (FATF) standards.
The Master Direction is divided into sections, including Introduction, Definitions, Registration, Prudential Issues, and Capital Funds and Capital Requirements.
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