{"what_this_is":"The machine-readable twin of the BankPulse page for one RBI rulebook. Same points, same dates, same paragraph references as the page a person reads. RBI's own wording is not reproduced here: each point names the RBI paragraph, the character offset into the text BankPulse read and the sha256 of that text, so the claim can be checked against RBI's own document.","schema_version":1,"release_id":"d653cdb0a5","generated_at":"2026-09-15T00:33:59.117975+00:00","id":"md12938","title":"Reserve Bank of India (Standalone Primary Dealers) Directions, 2025 (Updated as on March 10, 2026)","document_kind":"Directions","page":"https://bankpulse.ai/rule/md12938","status":"In force","importance":{"code":"MR","label":"MUST READ","weight":"Must read","why":"Binding instrument, class not named: applies broadly","layer":"bankpulse_inference"},"applies_to":{"shown":"Primary dealers and finance companies","class_code":"ALL","from":"Para 3","layer":"bankpulse"},"dates":{"prid":"md12938","mode":"four_dates_v1","published":{"label":"Published","value":"Nov 28, 2025","stated":true,"why":"The day RBI put this document out."},"effective":{"label":"Starts to apply","value":"","stated":false,"why":"Not stated separately in this document. Read the rule itself before you assume a start date."},"transition":{"label":"Time to get ready","value":"","stated":false,"why":"Cannot be worked out until the day it starts to apply is known."},"deadline":{"label":"Last date to act","value":"","stated":false,"why":"No date to act by was found in this document. Other dates may sit inside single paragraphs."},"sources":{"published":"doc_date in data/highlights/md12938.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12938","document_date":"Nov 28, 2025","read_by_bankpulse":"2026-08-21 16:21:00 UTC","text_sha256":"7b534ea097b1ce0a7af45f710ce99234dba8dd130db909b3e9e88b78fc8c9eaf","word_count":19070,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":58,"points_naming_an_rbi_paragraph":58,"points_stored":58,"actions":0,"amendments":2},"points":[{"n":1,"claim":"md12938-0366c1f2","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who these rules cover","plain_english":"These Directions apply to every Standalone Primary Dealer registered as an NBFC with RBI.","rbi_paragraph":"Para 3","rbi_char_offset":3349,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p1","layer":"bankpulse"},{"n":2,"claim":"md12938-95558888","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Always in the Middle Layer","plain_english":"An SPD always sits in RBI's Middle Layer for NBFC regulation.","rbi_paragraph":"Para 8","rbi_char_offset":5843,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p2","layer":"bankpulse"},{"n":3,"claim":"md12938-a2a8948e","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Directions took effect at once","plain_english":"These Directions started applying immediately, from the day they were issued.","rbi_paragraph":"Para 2","rbi_char_offset":3267,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p3","layer":"bankpulse"},{"n":4,"claim":"md12938-65da1a7b","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Other RBI rules still apply","plain_english":"Rules from any other RBI department that cover an SPD must still be followed.","rbi_paragraph":"Para 4","rbi_char_offset":3594,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p4","layer":"bankpulse"},{"n":1,"claim":"md12938-4c2307f0","page_group":"Chapter II. Registration","stored_section":"REGISTRATION AND CAPITAL","heading":"Board approves its policies","plain_english":"The SPD's Board must approve its own governance policies.","rbi_paragraph":"Para 11","rbi_char_offset":11664,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p5","layer":"bankpulse"},{"n":2,"claim":"md12938-12473944","page_group":"Chapter II. Registration","stored_section":"REGISTRATION AND CAPITAL","heading":"Ten crore to register","plain_english":"RBI sets ₹10 crore as the net owned fund needed to start as an NBFC.","rbi_paragraph":"Para 13","rbi_char_offset":13206,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p6","layer":"bankpulse"},{"n":1,"claim":"md12938-0ec5df42","page_group":"Chapter III. Capital Funds and Capital Requirements","stored_section":"REGISTRATION AND CAPITAL","heading":"Minimum CRAR, 15 per cent","plain_english":"An SPD must always hold a minimum CRAR of 15 per cent.","rbi_paragraph":"Para 16","rbi_char_offset":14257,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p7","layer":"bankpulse"},{"n":2,"claim":"md12938-352778e3","page_group":"Chapter III. Capital Funds and Capital Requirements","stored_section":"CAPITAL AND MARKET RISK","heading":"Equity risk uses one method","plain_english":"For equity and equity derivatives, an SPD must use the Internal Models approach only.","rbi_paragraph":"Para 87","rbi_char_offset":67223,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p8","layer":"bankpulse"},{"n":3,"claim":"md12938-aab3f54d","page_group":"Chapter III. Capital Funds and Capital Requirements","stored_section":"REGISTRATION AND CAPITAL","heading":"Forex risk charge","plain_english":"Forex net open positions carry a market risk capital charge of 15 per cent.","rbi_paragraph":"Para 92","rbi_char_offset":69035,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p9","layer":"bankpulse"},{"n":4,"claim":"md12938-ffb230ed","page_group":"Chapter III. Capital Funds and Capital Requirements","stored_section":"CAPITAL AND MARKET RISK","heading":"Capital charge always held","plain_english":"The capital charge for credit and market risk must be maintained at all times.","rbi_paragraph":"Para 95","rbi_char_offset":72893,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p10","layer":"bankpulse"},{"n":5,"claim":"md12938-d6c3e5ee","page_group":"Chapter III. Capital Funds and Capital Requirements","stored_section":"REGISTRATION AND CAPITAL","heading":"Tier 2 subordinated debt cap","plain_english":"Subordinated debt counted as Tier 2 capital cannot exceed 50 per cent of Tier 1 capital.","rbi_paragraph":"Para 97","rbi_char_offset":73519,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p11","layer":"bankpulse"},{"n":6,"claim":"md12938-9004e61a","page_group":"Chapter III. Capital Funds and Capital Requirements","stored_section":"REGISTRATION AND CAPITAL","heading":"Tier 2 capital ceiling","plain_english":"Total Tier 2 capital can never exceed 100 per cent of Tier 1 capital.","rbi_paragraph":"Para 98","rbi_char_offset":73607,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p12","layer":"bankpulse"},{"n":7,"claim":"md12938-c0215408","page_group":"Chapter III. Capital Funds and Capital Requirements","stored_section":"REGISTRATION AND CAPITAL","heading":"Deducted assets get zero weight","plain_english":"Capital already deducted from the fund carries a zero risk weight.","rbi_paragraph":"Para 19(1)","rbi_char_offset":16758,"weight":"BACKGROUND","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p13","layer":"bankpulse"},{"n":8,"claim":"md12938-3f18b9a6","page_group":"Chapter III. Capital Funds and Capital Requirements","stored_section":"CAPITAL AND MARKET RISK","heading":"Net long and short positions","plain_english":"Long and short positions in the same security are reported on a net basis.","rbi_paragraph":"Para 88","rbi_char_offset":67722,"weight":"BACKGROUND","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p14","layer":"bankpulse"},{"n":1,"claim":"md12938-6e1fe303","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"BORROWING LIMITS","heading":"Call money borrowing cap","plain_english":"An SPD may borrow up to 225 per cent of its NOF in call money.","rbi_paragraph":"Para 107","rbi_char_offset":76282,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p15","layer":"bankpulse"},{"n":2,"claim":"md12938-8b31d765","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"BORROWING LIMITS","heading":"Call money lending cap","plain_english":"An SPD may lend up to 25 per cent of its NOF in that market.","rbi_paragraph":"Para 107","rbi_char_offset":76463,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p16","layer":"bankpulse"},{"n":3,"claim":"md12938-125e4447","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"BORROWING LIMITS","heading":"ICD borrowing cap","plain_english":"Inter-corporate deposit borrowing can never exceed 150 per cent of NOF.","rbi_paragraph":"Para 108","rbi_char_offset":76921,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p17","layer":"bankpulse"},{"n":4,"claim":"md12938-eaef9661","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"BORROWING LIMITS","heading":"No placing funds in ICDs","plain_english":"An SPD may never place its own funds in the ICD market.","rbi_paragraph":"Para 109","rbi_char_offset":77539,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p18","layer":"bankpulse"},{"n":5,"claim":"md12938-26f270d0","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"BORROWING LIMITS","heading":"FCNR(B) loan cap","plain_english":"FCNR(B) loans cannot exceed 25 per cent of an SPD's NOF.","rbi_paragraph":"Para 110","rbi_char_offset":77649,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":["foreign-exchange"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p19","layer":"bankpulse"},{"n":6,"claim":"md12938-5344d72e","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"BORROWING LIMITS","heading":"No external commercial borrowing","plain_english":"An SPD may not raise funds through External Commercial Borrowings.","rbi_paragraph":"Para 112","rbi_char_offset":78025,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p20","layer":"bankpulse"},{"n":7,"claim":"md12938-8984ae34","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"APPLICATION OF FUNDS","heading":"Core-only NOF floor","plain_english":"An SPD doing only core activities must hold at least ₹150 crore NOF.","rbi_paragraph":"Para 115","rbi_char_offset":78899,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p21","layer":"bankpulse"},{"n":8,"claim":"md12938-78a58911","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"APPLICATION OF FUNDS","heading":"Non-core NOF floor","plain_english":"An SPD doing non-core activities too must hold at least ₹250 crore NOF.","rbi_paragraph":"Para 115","rbi_char_offset":78989,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p22","layer":"bankpulse"},{"n":9,"claim":"md12938-c84884bd","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"APPLICATION OF FUNDS","heading":"Half of investments in G-Sec","plain_english":"An SPD must keep at least 50 per cent of its investments in G-Sec.","rbi_paragraph":"Para 116","rbi_char_offset":79192,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p23","layer":"bankpulse"},{"n":10,"claim":"md12938-28ebcd55","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"APPLICATION OF FUNDS","heading":"No repo with own constituent","plain_english":"An SPD may not repo corporate debt with its own constituent.","rbi_paragraph":"Para 121","rbi_char_offset":83186,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p24","layer":"bankpulse"},{"n":11,"claim":"md12938-7eb8bcb7","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"CAPITAL AND MARKET RISK","heading":"CDS market maker minimums","plain_english":"A CDS market maker needs Net Owned Funds of ₹500 crore and CRAR of 15 per cent.","rbi_paragraph":"Para 125","rbi_char_offset":85035,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p25","layer":"bankpulse"},{"n":12,"claim":"md12938-0226a447","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"APPLICATION OF FUNDS","heading":"Corporate bond sub-limit","plain_english":"Within that call-money limit, corporate bond investment is capped at 50 per cent of NOF.","rbi_paragraph":"Para 129","rbi_char_offset":86536,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p26","layer":"bankpulse"},{"n":13,"claim":"md12938-7095ade5","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"APPLICATION OF FUNDS","heading":"No unrated non-G-Sec","plain_english":"An SPD may not invest in unrated non-G-Sec securities.","rbi_paragraph":"Para 132","rbi_char_offset":88122,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p27","layer":"bankpulse"},{"n":14,"claim":"md12938-ebc677cc","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"APPLICATION OF FUNDS","heading":"Unlisted non-G-Sec cap","plain_english":"All of an SPD's unlisted non-G-Sec investments together cannot exceed 10 per cent of that portfolio.","rbi_paragraph":"Para 134","rbi_char_offset":88488,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p28","layer":"bankpulse"},{"n":15,"claim":"md12938-6f664fb1","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"PMS needs a clear mandate","plain_english":"For portfolio management, the SPD must get a clear client mandate and follow it.","rbi_paragraph":"Para 141","rbi_char_offset":92201,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p29","layer":"bankpulse"},{"n":16,"claim":"md12938-9c00986f","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"PMS carries no guarantee","plain_english":"Portfolio management is entirely at the customer's own risk, with no return guaranteed.","rbi_paragraph":"Para 141(1)","rbi_char_offset":92483,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p30","layer":"bankpulse"},{"n":17,"claim":"md12938-9a77c8fd","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"PMS funds held one year","plain_english":"Money placed with an SPD for portfolio management stays for at least one year.","rbi_paragraph":"Para 141(2)","rbi_char_offset":92597,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p31","layer":"bankpulse"},{"n":18,"claim":"md12938-30439c79","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"PMS client funds segregated","plain_english":"Client money in portfolio management is kept separate from the SPD's own funds.","rbi_paragraph":"Para 141(5)","rbi_char_offset":93145,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p32","layer":"bankpulse"},{"n":19,"claim":"md12938-6c595950","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"PMS deals at market rates","plain_english":"Every PMS transaction, with a client or between clients, is done at market rates.","rbi_paragraph":"Para 141(6)","rbi_char_offset":93422,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p33","layer":"bankpulse"},{"n":20,"claim":"md12938-4048641c","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"No margin payments for clients","plain_english":"An SPD may not pay margins for clients or carry overnight credit exposure to them.","rbi_paragraph":"Para 144(8)","rbi_char_offset":96523,"weight":"MUST KNOW","role":"Risk","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p34","layer":"bankpulse"},{"n":21,"claim":"md12938-76981a4b","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"CAPITAL AND MARKET RISK","heading":"Currency futures position limit","plain_english":"An SPD's EUR-INR position may not exceed 15 per cent of total open interest.","rbi_paragraph":"Para 145(3)","rbi_char_offset":98819,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p35","layer":"bankpulse"},{"n":22,"claim":"md12938-8b86efdf","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"BORROWING LIMITS","heading":"ICDs run one week minimum","plain_english":"Every inter-corporate deposit an SPD accepts must run at least one week.","rbi_paragraph":"Para 108(1)","rbi_char_offset":77215,"weight":"DO IT","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p36","layer":"bankpulse"},{"n":23,"claim":"md12938-007efeee","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"BORROWING LIMITS","heading":"Hedge half the FCNR risk","plain_english":"SPDs must hedge at least 50 per cent of that FCNR exposure at all times.","rbi_paragraph":"Para 110","rbi_char_offset":77793,"weight":"DO IT","role":"Treasury","team":null,"products_covered":["foreign-exchange"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p37","layer":"bankpulse"},{"n":24,"claim":"md12938-82fd91b1","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"BORROWING LIMITS","heading":"NCDs up to one year","plain_english":"An SPD can issue one-year NCDs without a bank working-capital limit.","rbi_paragraph":"Para 113","rbi_char_offset":78146,"weight":"DO IT","role":"Treasury","team":null,"products_covered":["working-capital"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p38","layer":"bankpulse"},{"n":25,"claim":"md12938-81961f07","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"APPLICATION OF FUNDS","heading":"Report swaps within 30 minutes","plain_english":"An SPD must report its IRS and FRA trades to CCIL within 30 minutes.","rbi_paragraph":"Para 124","rbi_char_offset":84404,"weight":"DO IT","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p39","layer":"bankpulse"},{"n":26,"claim":"md12938-f4fe759d","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"APPLICATION OF FUNDS","heading":"Report bond trades fast","plain_english":"OTC trades in corporate bonds must be reported within 15 minutes of the trade.","rbi_paragraph":"Para 135","rbi_char_offset":89182,"weight":"DO IT","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p40","layer":"bankpulse"},{"n":27,"claim":"md12938-3105e979","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Board reviews investments quarterly","plain_english":"The SPD's Board must review its non-G-Sec investments at least every quarter.","rbi_paragraph":"Para 137","rbi_char_offset":90093,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p41","layer":"bankpulse"},{"n":28,"claim":"md12938-e9385df9","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Clearing services need SEBI nod","plain_english":"An SPD needs SEBI's specific approval to offer clearing or custodial services.","rbi_paragraph":"Para 144(8)","rbi_char_offset":96785,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p42","layer":"bankpulse"},{"n":29,"claim":"md12938-b84013a9","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Board approves FX policy","plain_english":"The SPD's Board must approve its own foreign exchange policy.","rbi_paragraph":"Para 150","rbi_char_offset":104323,"weight":"DO IT","role":"Board","team":null,"products_covered":["foreign-exchange"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p43","layer":"bankpulse"},{"n":30,"claim":"md12938-5dd052a5","page_group":"Chapter IV. Sources and Application of Funds","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Brokers stay out of settlement","plain_english":"A broker who arranges a deal plays no part in settling it.","rbi_paragraph":"Para 144(2)","rbi_char_offset":95240,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p44","layer":"bankpulse"},{"n":1,"claim":"md12938-1abb0918","page_group":"Chapter V. Other Prudential Regulations","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Securities marked to market","plain_english":"Every security in the trading book is marked to market regularly.","rbi_paragraph":"Para 155","rbi_char_offset":106433,"weight":"MUST KNOW","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p45","layer":"bankpulse"},{"n":2,"claim":"md12938-f11f7209","page_group":"Chapter V. Other Prudential Regulations","stored_section":"CAPITAL AND MARKET RISK","heading":"Single and group exposure caps","plain_english":"Exposure to a single borrower cannot exceed 25 per cent of Tier 1 capital. A group borrower's cap is 40 per cent.","rbi_paragraph":"Para 159(1)","rbi_char_offset":107580,"weight":"MUST KNOW","role":"Risk","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"Suppose an SPD's Tier 1 capital is ₹200 crore. Its exposure to a single borrower may be up to 25 per cent of that, which is ₹50 crore. Its exposure to one borrower group may be up to 40 per cent, which is ₹80 crore.","anchor":"https://bankpulse.ai/rule/md12938#p46","layer":"bankpulse"},{"n":3,"claim":"md12938-5e18716b","page_group":"Chapter V. Other Prudential Regulations","stored_section":"CAPITAL AND MARKET RISK","heading":"AAA bond exposure caps","plain_english":"For AAA-rated corporate bonds, the single-borrower cap rises to 50 per cent. The group cap rises to 65 per cent.","rbi_paragraph":"Para 159(1)","rbi_char_offset":107790,"weight":"MUST KNOW","role":"Risk","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p47","layer":"bankpulse"},{"n":4,"claim":"md12938-25fcc80a","page_group":"Chapter V. Other Prudential Regulations","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Valuation stays independent","plain_english":"Valuing the securities book is kept separate from the dealing desk.","rbi_paragraph":"Para 158","rbi_char_offset":107317,"weight":"BACKGROUND","role":"Risk","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p48","layer":"bankpulse"},{"n":5,"claim":"md12938-5811fbc7","page_group":"Chapter V. Other Prudential Regulations","stored_section":"CAPITAL AND MARKET RISK","heading":"Government-guaranteed exposure has no cap","plain_english":"Exposure limits do not apply where the Government of India fully guarantees the loan.","rbi_paragraph":"Para 159(1)","rbi_char_offset":108057,"weight":"BACKGROUND","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p49","layer":"bankpulse"},{"n":6,"claim":"md12938-c09ec1ea","page_group":"Chapter V. Other Prudential Regulations","stored_section":"CAPITAL AND MARKET RISK","heading":"QCCP clearing sits outside cap","plain_english":"Clearing exposure to a qualifying CCP sits outside the normal 25 per cent limit.","rbi_paragraph":"Para 159(3)","rbi_char_offset":108550,"weight":"BACKGROUND","role":"Treasury","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p50","layer":"bankpulse"},{"n":1,"claim":"md12938-98e92fca","page_group":"Chapter VI. Governance Issues – Corporate Governance","stored_section":"DISCLOSURE AND REPORTING","heading":"Publish audited results","plain_english":"An SPD must publish its audited annual results in leading financial dailies.","rbi_paragraph":"Para 173","rbi_char_offset":112899,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p51","layer":"bankpulse"},{"n":2,"claim":"md12938-bd391a73","page_group":"Chapter VI. Governance Issues – Corporate Governance","stored_section":"DISCLOSURE AND REPORTING","heading":"Penalties go public","plain_english":"When RBI fines an SPD, it issues a public press release naming the reasons.","rbi_paragraph":"Para 174","rbi_char_offset":113447,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p52","layer":"bankpulse"},{"n":1,"claim":"md12938-95d724b1","page_group":"Chapter VII. Miscellaneous Instructions","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Broker limit, five per cent","plain_english":"No single broker may handle more than five per cent of yearly transactions.","rbi_paragraph":"Para 177","rbi_char_offset":114541,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p53","layer":"bankpulse"},{"n":2,"claim":"md12938-099a635e","page_group":"Chapter VII. Miscellaneous Instructions","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Broker panel reviewed yearly","plain_english":"Top management approves the broker panel, reviewed at least once a year.","rbi_paragraph":"Para 178","rbi_char_offset":114934,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p54","layer":"bankpulse"},{"n":3,"claim":"md12938-6d0150ac","page_group":"Chapter VII. Miscellaneous Instructions","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Broker records must be kept","plain_english":"The SPD keeps a broker-wise record of every deal and the brokerage paid.","rbi_paragraph":"Para 178","rbi_char_offset":115229,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p55","layer":"bankpulse"},{"n":4,"claim":"md12938-8584c36b","page_group":"Chapter VII. Miscellaneous Instructions","stored_section":"PORTFOLIO MANAGEMENT AND BROKERS","heading":"Broker's role stays limited","plain_english":"A broker only brings the two sides of a deal together, nothing more.","rbi_paragraph":"Para 180","rbi_char_offset":115618,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p56","layer":"bankpulse"},{"n":1,"claim":"md12938-62d29d78","page_group":"Chapter IX. Repeal and Other Provisions","stored_section":"REPEAL AND INTERPRETATION","heading":"Old repeals stay repealed","plain_english":"Directions already repealed earlier stay repealed under this rulebook too.","rbi_paragraph":"Para 187","rbi_char_offset":117509,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p57","layer":"bankpulse"},{"n":2,"claim":"md12938-f2c1ff5c","page_group":"Chapter IX. Repeal and Other Provisions","stored_section":"REPEAL AND INTERPRETATION","heading":"RBI's word is final","plain_english":"If a rule is unclear, RBI's own interpretation of it is final and binding.","rbi_paragraph":"Para 190","rbi_char_offset":118884,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md12938#p58","layer":"bankpulse"}],"actions":[],"amendments":[{"id":"nt13317","title":"Reserve Bank of India (Standalone Primary Dealers) Amendment Directions, 2026","date":"Mar 10, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13317&Mode=0","order":1,"layer":"rbi_source"},{"id":"nt13537","title":"Reserve Bank of India (Standalone Primary Dealers) Second Amendment Directions, 2026","date":"Jun 24, 2026","rbi_url":"https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13537&Mode=0","order":2,"layer":"rbi_source"}],"layers":{"rbi_source":"Facts taken from RBI's own document.","bankpulse":"BankPulse's plain-English summary of RBI's document.","bankpulse_inference":"BankPulse's own inference, not stated by RBI."},"rbi_wording_not_included":"By design. BankPulse never republishes RBI's exact sentences. Use rbi_paragraph with rbi_source.url to read RBI's own words.","terms":"BankPulse's plain-English summaries are BankPulse's own work. The underlying regulation is the Reserve Bank of India's. Always check the RBI document named in rbi_source before acting."}