No credit exposure limit for primary dealers in govt debt

MUMBAI: The Reserve Bank of India said on Monday primary dealers would not have to follow credit exposure limits for government bonds.

In earlier guidelines, primary dealers were advised to adhere to a credit exposure limit of 25 percent of their net owned funds to a single borrower and 40 percent of their net owned funds to group borrowers.

However, primary dealers should include credit risk exposures for non-government securities, the central bank said in a statement.