WOW session by Kritika Ma'am!! Thank you Edutap!! HW: Q1) Option (E) All of the Above. Q2) Option (A) Over-The-Counter (OTC) markets Short Notes made: Topics: Reserve Bank of India (Government Securities Lending) Directions, 2023 Issued by RBI under 45-W & 45-U of RBI Act,1934. Keywords: GSL Transaction, GSL Fee, OTC markets, Delivery vs Delivery, ETP, Short sale. Applicable to all GSL transactions, undertaken in Over-the-Counter(OTC) markets. GSL fee to be paid by the borrower to the lender of the security. Eligible securities for Lending/ Borrowing: Government securities issued by the CGovt excluding Treasury Bills. Eligible securities for placing as Collateral under a GSL transaction: G-Secs issued by the CGovt (including Treasury Bills) and the State Govt. Tenure of GSL Transaction: minimum: 1 day. Maximum: 3 months. (=Short sales shall be covered within a period of 3 months from the date of transaction (inclusive of the date). Settlement of trades: on Delivery versus Delivery basis, settle first leg either on a T+0 or T+1 basis, through Clearing Corporation of India Ltd. (CCIL). Reporting of trades: to the CCIL within 15 minutes of execution by ETP operator or counterparties. Computation of Statutory Liquidity Ratio (SLR): (1)G-Secs borrowed counted in SLR by the borrower. G-secs lent not counted in SLR by the lender. (2)Collateral counted in SLR by the lender. Collateral not counted in SLR by the borrower. Treatment of coupon/discount during the loan period: Lender will accrue on lent securites. Borrower will accrue on collateral. GSL Fee i.e. Cash consideration payable by the borrower in the second leg does not include any intervening cash flows. Use of security borrowed: Sold either through an outright or a repo transaction or used for meeting a delivery obligation in a short sale; or Used for availing Reserve Bank’s Liquidity Adjustment Facility; or Lent under/collateral for another GSL transaction. Substitution of collateral: with other eligible securities in terms of the rules of the central counterparty. Q.1) What is a GSL transaction? Ans. “Government Securities Lending (GSL) transaction” refers to dealing in Government securities involving lending of eligible Government securities, for a fee, by the owner of those securities (the lender) to a borrower, on the collateral of other Government securities, for a specified period of time, with an agreement that the borrower shall return to the lender the security borrowed and the latter shall return the security received as collateral to the former at the end of the agreed period. Q.2) What is “Delivery versus Delivery” ? Simple in Hindi : Delivery k badle Delivery. Maal k badle Mall. Ans. “Delivery versus Delivery” means a settlement mechanism which stipulates that transfer of securities from the borrower of securities is made simultaneously with the transfer of securities by the lender of securities. Link for original Directions: rbi.org.in/Scripts/NotificationUser.aspx?Id=12580&Mode=0
Ma'am please keep the session short. As inorder to complete this series one would require lot of time.😅 I would like to thank for uploading free lecture and brilliant content🎉
Why would the bank b borrow government securities by putting other government securities as collateral. The bank b can directly use the government securities it posses for its use rather than borrow some other government securities from other banks... Please clarify my doubt.
@@kritikasharma7938 ma'am, is T bills not considered as goverenment securities, and these can also be be used as SLR quota for banks or any other reserves which they need to maintain as per RBI. so why the extra need for borrowing long term Gsec as they already have Tbills and SDL which they would keep as collateral for borrowing Gsec from oher banks? can you clarify this.
Hello Animesh The Notification has many minute points and it is very technical. Kindly watch it twice or thrice to completely understand the notification. You can also watch the previous video on this topic. Regards, Kritika
WOW session by Kritika Ma'am!! Thank you Edutap!!
HW:
Q1) Option (E) All of the Above.
Q2) Option (A) Over-The-Counter (OTC) markets
Short Notes made:
Topics: Reserve Bank of India (Government Securities Lending) Directions, 2023
Issued by RBI under 45-W & 45-U of RBI Act,1934.
Keywords: GSL Transaction, GSL Fee, OTC markets, Delivery vs Delivery, ETP, Short sale.
Applicable to all GSL transactions, undertaken in Over-the-Counter(OTC) markets.
GSL fee to be paid by the borrower to the lender of the security.
Eligible securities for Lending/ Borrowing: Government securities issued by the CGovt excluding Treasury Bills.
Eligible securities for placing as Collateral under a GSL transaction: G-Secs issued by the CGovt (including Treasury Bills) and the State Govt.
Tenure of GSL Transaction:
minimum: 1 day.
Maximum: 3 months. (=Short sales shall be covered within a period of 3 months from the date of transaction (inclusive of the date).
Settlement of trades:
on Delivery versus Delivery basis, settle first leg either on a T+0 or T+1 basis, through Clearing Corporation of India Ltd. (CCIL).
Reporting of trades: to the CCIL within 15 minutes of execution by ETP operator or counterparties.
Computation of Statutory Liquidity Ratio (SLR):
(1)G-Secs borrowed counted in SLR by the borrower.
G-secs lent not counted in SLR by the lender.
(2)Collateral counted in SLR by the lender.
Collateral not counted in SLR by the borrower.
Treatment of coupon/discount during the loan period:
Lender will accrue on lent securites.
Borrower will accrue on collateral.
GSL Fee i.e. Cash consideration payable by the borrower in the second leg does not include any intervening cash flows.
Use of security borrowed:
Sold either through an outright or a repo transaction or used for meeting a delivery obligation in a short sale; or
Used for availing Reserve Bank’s Liquidity Adjustment Facility; or
Lent under/collateral for another GSL transaction.
Substitution of collateral: with other eligible securities in terms of the rules of the central counterparty.
Q.1) What is a GSL transaction?
Ans. “Government Securities Lending (GSL) transaction” refers to dealing in Government securities involving lending of eligible Government securities, for a fee, by the owner of those securities (the lender) to a borrower, on the collateral of other Government securities, for a specified period of time, with an agreement that the borrower shall return to the lender the security borrowed and the latter shall return the security received as collateral to the former at the end of the agreed period.
Q.2) What is “Delivery versus Delivery” ?
Simple in Hindi : Delivery k badle Delivery. Maal k badle Mall.
Ans. “Delivery versus Delivery” means a settlement mechanism which stipulates that transfer of securities from the borrower of securities is made simultaneously with the transfer of securities by the lender of securities.
Link for original Directions: rbi.org.in/Scripts/NotificationUser.aspx?Id=12580&Mode=0
Kudos to your efforts!
It's awesome...mam
If this was in hindi it would have taken lesser time and easy to understand also
Ma'am pls try to use some Hindi in explanation
Ma'am please keep the session short. As inorder to complete this series one would require lot of time.😅
I would like to thank for uploading free lecture and brilliant content🎉
Thank you mam
Ans
1)E
2)A
Thank you ma'am.
answers 1)E
2)A (OTC)
Q.1) ans all of above
Q.2)Ans A
Thanks mam....🎉
1. all G-secs by both central and state including T-bills by central government
2. applicable in OTC markets other than stock exchanges(BSE&NSE)
1)E
2)A
1.e
2. A
Thankyou Ma'am
Q1: E
Q2: A
Thank you mam
Homework :
1. All of the above
2. Over the counter
Thank you ma'am😊
Thank you, Ma'am,
1. E
2. A
1. E (All of them are eligible)
2. A (Over-the-counter markets)
Thank you for the session mam
Homework questions:-
1. E all of the above
2. A over the counter markets
Thank You Very Much Ma'am for Amazing Session..!!
Hw Questions
1. E
2. A
Why would the bank b borrow government securities by putting other government securities as collateral. The bank b can directly use the government securities it posses for its use rather than borrow some other government securities from other banks...
Please clarify my doubt.
Hello Saurav
It might be the case that the bank has Tbills and SDL but requires dated GSec.
Regards
Kritika
@@kritikasharma7938 Thank you.
@@kritikasharma7938 ma'am, is T bills not considered as goverenment securities, and these can also be be used as SLR quota for banks or any other reserves which they need to maintain as per RBI. so why the extra need for borrowing long term Gsec as they already have Tbills and SDL which they would keep as collateral for borrowing Gsec from oher banks? can you clarify this.
Mam, if lender will get the coupon on securities then why anyone will take security as a lending...it will be of what use to that person??
1-c
2-a
Q.1-E(All)
Q.2-A(OTC markets)
Thank you Ma'am. Awesome session ❤
Answer -
1. E (all)
2.. A (OTC markets)
Ans1 = All of the above
Ans2 = OTC Market
Q1 e all of the above
Q2 a over the counter market
Thank you for the session, Ma'am.
1. E (All of them are eligible)
2. A (Over-the-counter markets)
1. Option E (All The Above)
2. Option A( Over The Counter)
1. E(all of the above)
2. A(OTC Markets)
Q. 1 = option E
Q. 2 = option A
Mam, please make a video for 2028 batch rbi grade b examination give complete roadmap
khao piyo aaram karo
1.E
2.A
Respected Kritika Madam,
What is the impact of RBI ban on all investments in AIF & How it's going to be a concern for stakeholders ??
hello ma'am..i have started watching these session from today only so from which month should i start watching sessions for upcoming gr b exam?
Yes same ans
1.e
2.a
Mam why are we covering this RBI Report of february 2023 ?
1-E,2-A
Question 1. E : All of them are eligible
Question 2. A : Over the counter markets
Q1.E
Q2.A
QNO 1. ANSWER OPTION - E (Collateral can be G-sec including T-bills and SDLs)
QNO 2. ANSWER OPTION - A (OTC - over the counter)
What you explained, is that not “Naked short sale” ?
Ma'm it was very confusing.
Hello Animesh
The Notification has many minute points and it is very technical. Kindly watch it twice or thrice to completely understand the notification.
You can also watch the previous video on this topic.
Regards,
Kritika
Thank you for your proactive response Ma'am . Will do the same.
Q-1 (E) & Q-2 (A)
Ma’am Please keep the content in points and don’t say the same thing multiple times..it just wastes a lot of time..
Hello Suchit
Thank you for the feedback will keep this in mind.
Regards,
Kritika
I agree with the comment.
Q1 Choice E
Q2 Choice A
A FRUITFUL SESSION ....
Its a request for edutap ki isko nikalo, isko padhana nhi aata, kitna ghatiya padhati h, wohi same cheez repeat pe bolti hai
1. E
2. A
1. E
2. A