What changed
RBI issued a master circular consolidating all existing guidelines/instructions for Primary Dealers (PDs) issued up to June 30, 2008. This replaces earlier circulars and provides a single reference document. Separate master circular covers risk management and capital adequacy for standalone PDs.
What it means for you
Banks and standalone PDs now have a single source for all operational guidelines, reducing confusion from multiple circulars. Banks doing PD business departmentally must follow bank-specific capital adequacy and risk management rules, not the standalone PD norms. This consolidation streamlines compliance but does not change existing requirements.
What you must do
- Review the master circular to ensure your PD operations comply with all consolidated guidelines.
- Update internal compliance manuals to reference this master circular as the primary source for PD operational rules.
- For banks with departmental PD units, verify that capital adequacy and risk management follow bank-level guidelines, not standalone PD norms.
- Ensure all staff handling PD operations are aware of the consolidated instructions and any annexures for reporting.
Who it affects
Standalone Primary Dealers, Banks authorized to undertake PD business departmentally, Compliance and risk management teams of PDs, RBI's Department of Internal Debt Management (IDMD)
Does this master circular introduce any new requirements for Primary Dealers?
No, it only consolidates all existing guidelines issued up to June 30, 2008, into one document. No new rules are added.
Are banks with departmental PD units subject to the same risk management rules as standalone PDs?
No. Banks must follow the extant guidelines applicable to banks for capital adequacy and risk management, not the separate master circular for standalone PDs.
Where can I find the list of circulars that are consolidated in this master circular?
The list is provided in Annex X of the master circular, which includes all circulars issued up to June 30, 2008.