RBI allows matching of PM-GAH transactions on NDS-OM, CCIL settlement

Transactions between a Primary Member (PM) and its own Gilt Account Holder (GAH) or between two GAHs of the same PM can now be matched on both the anonymous Order Matching (NDS-OM) segment and the Request for Quote (RFQ) segment of NDS-OM, with such transactions being cleared and settled through the Clearing Corporation of India Limited (CCIL), the Reserve Bank of India (RBI) said in a notification on Monday.

 

Additionally, the facility of clearing and settlement through CCIL is extended, on an optional basis, to bilaterally negotiated transactions between a PM and its own GAH, or between two GAHs of the same PM, provided they are reported to NDS-OM.

 

 

"On a review and based on the feedback received, it has been decided to permit matching of transactions between a PM and its own GAH or between two GAHs of the same PM on both the anonymous Order Matching segment and the Request for Quote (RFQ) segment of NDS-OM. Transactions matched on NDS-OM shall be cleared and settled through CCIL," said the notification.

 

"Extend the facility of clearing and settlement through CCIL to transactions between a PM and its own GAH or between two GAHs of the same PM which are bilaterally negotiated and reported to NDS-OM, on an optional basis," it added.

 

Currently, transactions between a PM and its own GAH or between two GAHs of the same PM are not permitted to be matched on NDS-OM and are not cleared or settled through CCIL.

 

Detailed operational guidelines on this matter will be issued by CCIL.