Reserve Bank of India working with regulators to develop fixed income securities lending

20th FIMMDA – PDAI Annual Conference
Shri B.P Kanungo, Deputy Governor, Reserve Bank of India – August 31, 2019 – Moscow

IRDA, SEBI and PFRDA too could help development of interest rate markets. For instance, short selling activity could benefit if a wider pool of securities lenders can be developed. Insurance and pension funds, mutual funds have significant holdings of Government securities that could be used to lent to short sellers. This would avoid short-squeeze incident we saw a couple of years back, apart from generating income for these entities. We are working with regulators to develop a securities lending product that could enable these entities to participate in securities lending.

The full speech is available at https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1084

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