Guidelines for Issue of Certificates of Deposit
The Reserve Bank of India has outlined guidelines for the issue of Certificates of Deposit (CDs), covering various aspects of their issuance and management.
Eligibility: The guidelines specify the eligibility criteria for issuers of CDs.
Aggregate Amount and Minimum Size: The circular outlines the aggregate amount and minimum size of issue for CDs, as well as the denominations in which they can be issued.
Investors and Maturity: The guidelines specify the eligible investors and the maturity periods for CDs.
Discount/Coupon Rate and Reserve Requirements: The circular outlines the discount/coupon rate and reserve requirements for CDs.
Transferability and Trades: The guidelines specify the transferability and trading rules for CDs.
Settlement and Loans/Buy-backs: The circular outlines the settlement process and rules for loans and buy-backs of CDs.
Format and Security Aspect: The guidelines specify the format of CDs and the security aspects to be considered.
Payment and Issue of Duplicate Certificates: The circular outlines the payment process and rules for issuing duplicate certificates.
Accounting and Reporting: The guidelines specify the accounting and reporting requirements for CDs.
Standardized Market Practices and Documentation: The circular outlines the standardized market practices and documentation requirements for CDs.
The circular also includes annexes providing the format of negotiable CDs, definitions, and a list of consolidated circulars.
Chat with the Master Circular:
Download: Master Circular – Guidelines for Issue of Certificates of Deposit