Mumbai: The reserve Bank of India The central bank chief said on Wednesday that will allow banks to borrow and lend government bonds.
“We propose to allow lending and borrowing of G-Secs (Government securities). This will provide an opportunity to investors to deploy their passive securities, enhance portfolio returns and facilitate wider participation,” RBI governor Shaktikanta Das Said in his monetary policy address. “This measure will also add depth and liquidity to the G-Sec market,” Das said.
Bond market participants said the facility would allow banks to borrow the securities.
“Short selling will become a slightly easier process,” said a trader with a private bank.
“We propose to allow lending and borrowing of G-Secs (Government securities). This will provide an opportunity to investors to deploy their passive securities, enhance portfolio returns and facilitate wider participation,” RBI governor Shaktikanta Das Said in his monetary policy address. “This measure will also add depth and liquidity to the G-Sec market,” Das said.
Bond market participants said the facility would allow banks to borrow the securities.
“Short selling will become a slightly easier process,” said a trader with a private bank.