Economics · Financial Markets
Within the Indian Money Market segment, the Tri-party Repo has emerged as a dominant instrument for managing short-term liquidity, effectively replacing the traditional CBLO. If a Scheduled Commercial Bank faces a temporary mismatch in its liquidity coverage ratio and decides to borrow funds through the Tri-party Repo platform, which entity acts as the central counterparty to provide settlement guarantee, and what is the underlying collateral requirement?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Securities and Exchange Board of India acts as the counterparty and Commercial Papers are the only accepted collateral.
- 2Reserve Bank of India acts as the counterparty and only Gold is accepted as collateral.
- 3Clearing Corporation of India Limited (CCIL) acts as the counterparty and eligible Central/State Government securities or treasury bills are accepted as collateral.✓
- 4National Stock Exchange acts as the counterparty and only Equity shares are accepted as collateral.
Correct answer
Clearing Corporation of India Limited (CCIL) acts as the counterparty and eligible Central/State Government securities or treasury bills are accepted as collateral.
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