MUMBAI, JULY 19: The Reserve Bank of India (RBI) said on Monday the government had permitted 35 non-banking entities to undertake ready forward transactions in notified government securities.The non-banking firms included primary dealers, dedicated gilt funds, mutual funds, insurance companies and some Financial institutions, the RBI statement said.The RBI said the decision to permit India's largest mutual fund the Unit Trust of India, the Life Insurance Corporation of India and other non-banking firms to undertake ready forward transactions, or repos, was taken in the central bank's April credit policy.Earlier these firms were permitted to undertake only reverse repos, which involves purchase of securities with an agreement to sell back at a later date."It was however necessary for the Government of India to issue a notification permitting non-banking entities to enter the ready forward market," the statement said.It said the firms permitted to undertake ready forward transactions is as follows: Canbank Mutual Fund, Export Credit Guarantee Corporation of India Ltd, Export Import Bank of India, General Insurance Corporation of India, GIC Mutual Fund, Indian Bank Mutual Fund, General Insurance Corporation, Industrial Credit & Investment Corporation of India Limited, Industrial Development Bank of India, IDBI Mutual Fund, ITC Threadneedle Mutual Fund, Life Insurance Corporation of India, National Bank of Agriculture and Rural Development, National Housing Bank, New India Assurance Company Limited, Oriental Insurance Company Limited, Reliance Capital Mutual Fund, SBI Mutual Fund, Small Industries Development Bank of India, Unit Trust of India, LIC Mutual Fund, J.M. Mutual Fund, Birla Mutual Fund, Kothari Pioneer Mutual Fund, Jardine Fleming Mutual Fund, Kotak Mahindra Mutual Fund, JP Morgan Securities India Private Limited, ABN AMRO Securities (India) Pvt. Limited, Deutsche Securities (India) Private Limited, IndustrialInvestment Bank of India Limited, Bank of India Mutual Fund, Sun F & C Mutual Fund, Prudential ICICI Mutual Fund, Housing Development Finance Corporation Limited, Stock Holding Corporation of India Limited, SICOM Limited .The RBI said the entities could take up ready forward transactions provided "the deals are undertaken only at Bombay in treasury bills of all maturities issued by the Government of India and in such dated securities of Government of India as are approved by the Reserve Bank of India in consultation with the Central Government."The transactions will have to be put through Subsidiary General Ledger (SGL) Accounts with the Reserve Bank of India in Bombay, it said.
