Liquidity Adjustment Facility Standalone Primary Dealers

FMD.MOAG. No. 83/01.01.001/2013-14

July 23, 2013

All Standalone Primary Dealers

Dear Sir,

Liquidity Adjustment Facility

As you are aware, Reserve Bank of India announced additional measures today to address the exchange rate volatility. As a part of these measures, it has been decided that the total amount of funds available to a standalone Primary Dealer (PD) under Liquidity Adjustment Facility (LAF) will be capped at 100 per cent of the individual PD™s net owned funds as per the latest audited balance sheet. The above changes in LAF will come into effect from July 24, 2013.

2. Presently, additional LAF repo is conducted on reporting Fridays. Under the new arrangement, the cap for the individual PD will apply to the combined allocation of funds in the morning and additional LAF repo.

3. All other terms and conditions of the current LAF scheme will remain unchanged.

4. Please acknowledge receipt.

Yours sincerely

(G. Mahalingam)
Principal Chief General Manager

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

Leave a Reply

Your email address will not be published. Required fields are marked *

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates