UNLISTED COMPANIES TO ENTER REPO MARKET

The Reserve Bank of India (RBI) has allowed unlisted companies, to which the government has issued special securities, to enter into ready forward contracts. This facility will help the unlisted entities use special securities as collateral to get funds from the repo market. Fertilizer companies are most likely to benefit from this decision. These entities will be allowed to trade in the market repo and not repos with RBI under the liquidity adjustment facility. This will ease the temporary liquidity
concerns of the unlisted entities.