> This is a note on Repo and Tri-party Repo on G-Secs and Corporate Bonds in the open market. > *Last edited: Jan 15, 2026* > #tripartyrepos #repos In this note, we will not discuss about the repos between RBI and the banks. This happens through the [[Liquidity Adjustment Facility (LAF)|LAF]] window. Unlike outright transactions, repos and tri-party repos are lending of funds against a collateral. They involve 2 and 3 parties respectively, with collaterals as either G-Secs including municipal bonds (and instruments are called market repos, which can be basket or special repos, or Tri-party repos) or corporate bonds. Thus an asset like government and corporate securities can be sold outright or used as a collateral to borrow funds for some period in the open market. # Repos/Standard Repos 1. This repo involves 2 parties. 2. A repo transaction for party A is lending of funds to another party B against a collateral of securities. It stands for re-purchase agreement and hence the borrower will re-purchase the securities, viz. receive the custody of the securities, with the repayment of principal and interest amounts. 3. The [entities allowed](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11745&Mode=0#ENG:~:text=4.%20Eligible%20participants) for repos include any entity regulated by RBI, any listed companies, etc. So it includes almost all the entities like all types of banks, insurance companies, mutual funds, primary dealers, NBFCs, provident/pension funds. 4. The interest on securities provided as collateral goes only to the borrower. 5. Inter-bank repo facility (market repos) in Government securities was introduced in 2003. 6. February, 2003 - Non-banks were allowed to participate in the repo market 7. Note that unlike repos, outright transactions are outright sale/purchase of government securities. ## By Collateral ### Market Repo ^a11ed6 1. Market repos, refer to the market repos on CCIL platform with collateral as government securities (including Municipal Debt Securities). 1. *CCIL is the only clearing and settlement agent for all secondary market transactions in G-Secs.* 2. They are either basket (collateral chosen from a general eligible pool) or special repos (repo against a specific G-sec ISIN identified by the borrower). In the latter case, the aim is to borrow specific securities. 3. They are [traded](https://www.clearcorp.co.in/web/clearcorp/home-page3) on CCIL's Clearcorp Repo Order Matching System (CROMS), 1. CROMS was launched in January 27, 2009. 4. If they are OTC, they are compulsorily [reported](https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=711#:~:text=All%20the%20above%20mentioned%20repo%20market%20transactions%20should%20be%20traded/reported%20on%20the%20electronic%20platform%20called%20the%20Clearcorp%20Repo%20Order%20Matching%20System%20(CROMS).) on CROMS, from April 2013. They can be seen as [reported deals](https://www.clearcorp.co.in/web/clearcorp/reported-deals2) on CROMS. 5. ==On CCIL website, it is sum of [trades](https://www.ccilindia.com/web/ccil/repo-summary) in CROMS + Reported on CROMS. In daily MMO data, it is sum of Market Repo in Overnight + Term segment.== 6. These repos involve only 2 parties, viz. banks and financial institutions.. 7. The tenor can either be for an overnight or for a term (for period more than 1 day but less than 365 days). *The daily money market operations data shows money market activity categorized into the above 2 tenors.* 8. **Timings:** With effect from August 01, 2025, the revised trading hours are from 9:00 AM to 4:00 PM (earlier 2:30 PM). The call money market closes at 7 PM (earlier 5:00 PM). ### Repos in Corporate bonds 1. On [January 8, 2010](https://rbi.org.in/scripts/NotificationUser.aspx?Id=5456&Mode=0#A), RBI decided to introduce repo/standard repo in corporate bonds. 2. Here [corporate bonds](https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11345&fn=6&Mode=0#:~:text=(a)%20%E2%80%9C-,Corporate%20bonds%20and%20debentures,-%E2%80%9D%20mean%20non) refer to non-convertible corporate debt securities like bonds/NCDs, debentures, CDs, CPs, such other securities of a company, a multilateral financial institution (MFI) or a body corporate constituted by or under a Central Act or a State Act. 3. Based on tenors, they can be overnight or for a term (for period more than 1 day but less than 365 days). 4. Trading 1. The OTC repos in corporate bonds are reported to [F-TRAC](https://www.ftrac.co.in/CP_SEC_MEM_MARK_WATC_VIEW.aspx) 1. F-TRAC is an internet based trade reporting system (since June 2019 but implemented in phases) facilitating primary market reporting of CDs, CPs, NCDs and reporting of _secondary market trades_ in CDs, CPs, NCDs and repos in corporate bonds. 2. Stock Exchanges - NSE and BSE 1. Repos on exchange are always triparty repos. 2. Clearing & Settlement managed by clearing houses like AMC Repo Clearing Limited (ARCL), and Indian Clearing Corporation Ltd (ICCL) on NSE and BSE respectively. 3. BSE & NSE launched repos in corporate debt securities on May 28, 2018 and June 2018 respectively 3. ==Statistics on [Corporate Bonds](https://www.sebi.gov.in/statistics/corporate-bonds.html)== available on SEBI's website 5. [February 03, 2015](rbi.org.in/Scripts/NotificationUser.aspx?Id=9542) - RBI permitted bonds issued by multilateral financial institutions like World Bank Group (e.g., IBRD, IFC), the Asian Development Bank and the African Development Bank in India as eligible underlying for repo in corporate debt securities. 6. Borrowings by a bank through repo in corporate bonds and debentures are [reckoned as liabilities](https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11345&fn=6&Mode=0#:~:text=Borrowings%20by%20a%20bank%20through%20repo%20in%20corporate%20bonds) for CRR/SLR requirement and, to the extent these liabilities are to the banking system, they are netted out (excluded) as per section 42(1) of the RBI Act, 1934\. ## By Tenors: 1. If tenor is up to 1 day, it is an overnight transaction. 2. If the tenor is 2 to 14 days and from 15 days to one year tenor, it is a Notice/Term money transaction respectively. **The Term Segment in money market operations data** includes data for both the tenors. # Triparty Repo ^bde197 **This repo involves 3 parties** “Triparty repo” means a repo contract where a 3rd entity (apart from the borrower and lender), called a Triparty Agent, acts as an intermediary between the two parties to the repo *to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction*. They are just like repos but a third entity takes care of the collateral management and the settlement for the tenor of tri-party repos. *These repos minimize default risk*.^00228a 1. April 11, 2017 - RBI released [draft framework](https://rbi.org.in/Scripts/bs_viewcontent.aspx?Id=3336) as the Tri-Party Repo (Reserve Bank) Directions, 2017, to allow tri-party repos on government securities and corporate bonds. The aim was to allow market participants to use these assets to borrow funds and expand the term repo market. 2. August 10, 2017 - [Tri-Party Repo (Reserve Bank) Directions, 2017](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11088) was released. 1. In order to provide a new (alternate) repo instrument to Govt Securities Repo and improve the liquidity in the corporate bonds market, RBI had issued new directions for the introduction of Tri-party repos. 3. **March 1, 2018** - RBI released [draft framework](https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=3459) on Repurchase transactions (Repo) under section 45 W of the RBI Act, 1934. *This included repos and tri-party repos.* 4. **July 2018** - As announced in the [statement on Developmental and Regulatory Policies](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=43079) issued as part of the [sixth Bi-monthly Monetary Policy Statement for 2017-18 dated February 07, 2018](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=43078), a comprehensive repo directions titled [Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018](https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11345&fn=6&Mode=0) was issued in July 2018, and it superseded [Tri-Party Repo (Reserve Bank) Directions, 2017](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11088&Mode=0) 1. It allowed CCIL to act as a Triparty Repo Agent and provide central counterparty (CCP) clearing of triparty repo transactions under its securities segment with effect from November 5, 2018. 5. [November 5, 2018](https://www.clearcorp.co.in/web/clearcorp/company-profile) - TREPS, an anonymous electronic order matching platform for tri-party repo transactions was launched 6. November 11, 2025 - [Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025](https://rbi.org.in/scripts/FS_Notification.aspx?Id=12920&fn=6&Mode=0) was issued, and it superseded [Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018](https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11345&fn=6&Mode=0) 7. Tri-party repos are traded on electronic trading platforms or OTC. ## By Collateral ### Tri-party repos on G-secs ^9de7da 1. After the issue of, RBI had authorized the Clearing Corporation of India Limited (CCIL) to act as a Triparty Repo Agent and also to offer Triparty Repo in G-Secs as per its Repurchase Transactions (Repo) (Reserve Bank) Directions, 201 2. Tri-party repos on G-secs are electronically traded on ClearCorp Dealing Systems (India) Ltd. (CCDS's) TREPS. The _Clearcorp Dealing Systems (India) Limited_ (Clearcorp) is a wholly owned subsidiary of CCIL 1. [November 5, 2018](https://www.clearcorp.co.in/web/clearcorp/company-profile) - TREPS, an anonymous electronic order matching platform for tri-party repo trading was launched. 2. December 2018 - An article on TREPS was published on CCIL's Monthly Newsletter Rakshitra [[CCIL_201812_Rakshitra.pdf|(December 2018)]] 3. Also, TREPS only [**deals**](https://www.ccilindia.com/web/ccil/treps1) in tri-party repos in G-Secs. Here, CCIL for Clearcorp also acts as tri-party agent. 1. ==For outright transactions in G-Secs, repos (called Market Repos on CCIL which can be Basket or Special Repos) or tri-party repos in G-Secs, dealt on its systems, viz. NDS-OM, CROMS, TREPS respectively, or reported (OTC) to it by its members, CCIL provides guaranteed clearing and settlement through its [robust process](https://www.ccilindia.com/web/ccil/tripartyclearingsettlement).== 2. So if any member/participant fails to provide funds/ securities, CCIL will make the same available from its own means. To mitigate this risk, CCIL collects margins from them and maintains ‘[Settlement Guarantee Fund’](https://www.ccilindia.com/web/ccil/collateralmngmtintroduction5) 4. **Timings:** With effect from August 01, 2025, the revised trading hours are from 9:00 AM to 4:00 PM (earlier 3 PM). 5. Reporting of trades - All repos in Government securities have to be reported within 15 minutes of the trade to the Clearcorp Repo Order Matching System (CROMS) 6. [Settlement](https://www.ccilindia.com/web/ccil/tripartyintroductionbenefits): 1. Banks and non-banks institutions are allowed 2. Funds are [settled](https://www.ccilindia.com/documents/d/ccil/ccil-42-process-flow-for-settlement-pdf) either by current account at RBI or settlement bank and securities are settled in the gilt account of the member with the CCIL. 3. Deals are conducted based on 2nd leg amount and so the first leg amount is the current value of the 2nd leg. Trades are settled on MTM basis, using the weighted average of last 5 trades of the day in the said TREP ID 4. TREPID indicates the date of the 2nd leg of the trade, like TREP051224 means due date is 05-Dec-24. Available tenor is up to next 7 days and for 3 months end dates or particular tenor up to 365 days. 5. The first leg can be settled on the same day (T+0), or the next day (T+1) where T is trading date. On TREPS, tenor is up to next 7 days and for 3 months end dates, but can be up to 365 days. 6. Note that outright secondary market transactions in G-Secs are settled on a T+1 basis. 7. G-Secs include all the debt issued by the central (T-Bills, bonds, dated securities) and state government (SDLs/dated securities or bonds) and municipal securities. 8. There are also [risks](https://www.ccilindia.com/web/ccil/tripartyriskmanagement) involved for CCIL as the settlement agency in Tri-party repos. 1. In first leg, the lender may not provide funds or borrower may not provide collaterals to receive the funds at the time of settlement of the first leg/first trade of the tri-party transaction. 2. In second-leg, the borrower may default in payment. To manage these risks, settlement agencies *collect initial margin, apply hair-cut on collaterals and re-valuate them daily to calculate the changes in MTM*. If there is increase in MTM, the amount is debited from the borrower's account or asked to provide more collateral by the next day. 7. Thus all the 3, viz. _outright trades in G-Secs_, _market repos and tri-party repos_, dealt on its system or reported to it, are settled through CCIL. It is done under the [DvP-III process](https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=711#:~:text=18.%20What%20is-,Delivery%20versus%20Payment%20(DvP)%20Settlement,-%3F) to secure liquidity and netting efficiency in settlements. 8. Banks do not have to pay CRR/SLR on the funds borrowed under repo or tri-party repos in government securities. The borrowed funds will not be counted towards liabilities for CRR/SLR. 9. Securities acquired under repo shall be eligible for SLR provided the security is primarily eligible for SLR as per the provisions of the Act under which it is required to be maintained. 10. The Collateralised Borrowing and Lending Obligation (CBLO) segment of the money market was replaced with Triparty Repo (TREPS) with effect from November 05, 2018. 1. CBLO was launched in January, 2003. 11. Data Releases: 1. [Daily TREPS volume](https://www.ccilindia.com/treps-daily-settlement-volumes) on CCIL 2. Daily Money Market Operations Data by RBI (retrieved from CCIL) ### Tri-party repos on corporate bonds **Tri-party repos on corporate bonds** are available to trade on exchanges like BSE, NSE, [ARCL](https://www.arclindia.com/spages/Downloads/Tri-partyRepoBrochure.pdf). They act as tri-party agent and also clear and settle the trades. *Repos in exchange are always triparty repos.* 1. Here [corporate bonds](https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11345&fn=6&Mode=0#:~:text=(a)%20%E2%80%9C-,Corporate%20bonds%20and%20debentures,-%E2%80%9D%20mean%20non) refer to non-convertible corporate debt securities like bonds/NCDs, debentures, CDs, CPs, such other securities of a company, a multilateral financial institution (MFI) or a body corporate constituted by or under a Central Act or a State Act. 2. [August 10, 2017](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11088)- RBI issued triparty repo directions allowing recognized stock exchanges and clearing corporations of stock exchanges or clearing corporations authorized under PSS Act. to act as tri-party agent. 3. May 28, 2018 - [BSE](https://www.bseindia.com/downloads1/corporate_debt_repo_ppt.pdf) launched repos (Tri-party) in corporate debt securities. There are basket and special repos. 4. June 12, 2018 - NSE launched its platform for Tri-Party Repo in Corporate Debt Securities. 1. NSE (NSE's Tri-party repo Market Trading Platform) provides ARCL's Tri-party repo product on its trading platform. Here ARCL takes care of the clearing & settlement. 2. [Tri-party Repo on NSE](https://www.nseindia.com/market-data/debt-market-tri-party-repo). So all repos in corporate bonds and debentures settle through the clearing house of exchanges or any other entity which has been approved by the Reserve Bank. 6. ARCL offers clearing and settlement services to all trades executed on NSE and BSE under tri-party repo in corporate debt securities. 7. The buyer/seller do not come to know about each other. 8. ==**OTC** - All OTC trades in corporate securities, viz. outright transactions (primary and secondary market) in CDs, CPs, corporate bonds/NCDs, and repos (market and tri-party) in corporate bonds, are compulsorily [reported](https://www.ccilindia.com/web/ccil/primary-and-secondary-market) to Clearcorp's [F-TRAC](https://www.ftrac.co.in/CP_SEC_MEM_MARK_WATC_VIEW.aspx), which is an internet based _Trade_ Reporting system 9. A party cannot borrow against the collateral of debt securities of their own or related entities. All repo transactions, other than those on recognized stock exchanges or on approved electronic trading platforms, that disseminate trade information on the platforms, shall be reported within 15 minutes of the trade: repo in Government securities to the Clearcorp Repo Order Matching System (CROMS) and repo in other eligible securities to the reporting platform F-TRAC, respectively. ## By Tenors: 1. If tenor is up to 1 day, it is an overnight transaction. 2. If the tenor is 2 to 14 days and from 15 days to one year tenor, it is a Notice/Term money transaction respectively. 3. The Term Segment in [[Money Market Operations (MMO)|money market operations]] daily data includes data for both the tenors. # Regulations 1. A bank shall undertake repo in corporate bonds as per guidelines given in [Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025](https://rbi.org.in/scripts/FS_Notification.aspx?Id=12920&fn=6&Mode=0) dated November 11, 2025. It replaced the [Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11345&Mode=0). # Data Releases 1. Daily Money Market Operations Data 2. ==CCIL - Daily Weekly, Monthly, Quarterly and Annual Newsletter== 3. Secondary Market Transactions in Government Securities in the [Handbook of Statistics on Indian Economy](https://rbi.org.in/scripts/AnnualPublications.aspx?head=Handbook%20of%20Statistics%20on%20Indian%20Economy) # Related Notes 1. [[Call, Notice and Term Money|Call, Notice, Term Money]] 2. [[G-Secs-Primary Market|G-Secs - Primary Market (OPEN)]] 3. [[Money Market Operations (MMO)|Money Market Operations Data]] 4. [[Monetary Policy Frameworks in India|Monetary policy framework]] 5. [CCIL-Factbook 2023](https://www.ccilindia.com/documents/d/ccil/Milestones%20Annual-pdf) # References 1. Sahana Rajaram and Payal Ghose. (December 2018). *Triparty Repo Dealing and Settlement. (TREPS) - A Primer*. Rakshitra, December 2018. CCIL. [[CCIL_201812_Rakshitra.pdf|pdf]] 2. Golaka C Nath. Repo Market and Market Repo Rate as a Collateralized Benchmark Rate. WORKING PAPER Serial No. WP/007. Economic Research Department of The Clearing Corporation of India Ltd (CCIL). [Link](https://www.ccilindia.com/documents/d/ccil/WP007_Repo_Market_And_MROR_As_Collateralized_Benchmark_Rate_7-pdf)