Saturday, April 30, 2016

Risk Weight in respect of investments in Corporate Bonds by Standalone Primary Dealers (SPDs)


It has been decided to link the risk weights, assigned by SPDs to their investments in corporate bonds, to the rating of the bonds as under:

A.   Short term instruments (bonds ≤ 1 year maturity)
CARE
CRISIL
INDIA RATING
ICRA
BRICKWORK
SMERA
RISK WT
CARE A1+
CRISIL A1+
IND A1+
ICRA A1+
Brickwork A1+
SMERA A1+
20
CARE A1
CRISIL A1
IND A1
ICRA A1
Brickwork A1
SMERA A1
30
CARE A2
CRISIL A2
IND A2
ICRA A2
Brickwork A2
SMERA A2
50
CARE A3
CRISIL A3
IND A3
ICRA A3
Brickwork A3
SMERA A3
100
CARE A4&D
CRISIL A4&D
IND A4&D
ICRA A4&D
Brickwork A4&D
SMERA A4&D
150
Unrated
Unrated
Unrated
Unrated
Unrated
Unrated
100

B.    Long term instruments (bonds > 1 year maturity)
Rating
AAA
AA
A
BBB
BB
Unrated
Risk Weight
20
30
50
100
150
100

The above shall be applicable with immediate effect.
Based on the RBI notification dated 28/04/2016. Please refer www.rbi.org.in in case of any further clarification………….. Poppy