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Insurers to gain access to repo, G-Sec lending

Created at 2 Jun · 1:01 AM1 source↑ Market-relevant
IN SHORT

Insurers will soon be able to conduct repo and government securities lending transactions as the insurance regulator develops an operational framework. This move aims to provide insurers with greater liquidity management flexibility.

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Who's Involved

Insurance regulator
developing operational framework for repo and G-Sec lending
Insurers
will gain ability to undertake repo and G-Sec lending

↳ Why This Matters

Insurers are significant holders of government securities. Allowing them to engage in repo and securities lending transactions provides them with more tools to manage their liquidity, potentially leading to more efficient capital deployment and risk management within the insurance sector.

Key facts

  • Insurers will soon be able to undertake repo and government securities lending transactions.
  • The insurance regulator is developing an operational framework for these activities.
  • Recent amendments to insurance laws enable these changes.
  • The new framework will detail settlement, platforms, collateral, and risk management.

Insurers are significant holders of government securities. Allowing them to engage in repo and securities lending transactions provides them with more tools to manage their liquidity, potentially leading to more efficient capital deployment and risk management within the insurance sector.

Frequently asked questions

Insurers will be able to undertake repo and government securities lending transactions.

These changes are intended to offer insurers greater flexibility in managing their liquidity.

The framework will detail settlement, platforms, collateral, and risk management for these activities.

What Happens Next

01The insurance regulator will finalize and release the operational framework detailing settlement, platforms, collateral, and risk management for these transactions.

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How It Developed

2 Jun · 12:35 AM
Insurers will soon be able to conduct repo and government securities lending transactions as the insurance regulator develops an operational framework.
Economic Times via PiQSuite

Sources

T1
Rules in the works to enable G-Sec, repo deals by insurersm.piqsuite.com

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