IDBI Gilts Ltd. a wholly owned subsidiary of IDBI Bank Ltd. was formed to undertake the Primary Dealership [PD] Business.
The Company was incorporated on 13th December 2006 and received its Certificate of Commencement of Business on 6th February 2007.
Reserve Bank of India granted the necessary registration as a Non Banking Financial Company on 16th May 2007 and authorized IDBI Gilts Limited to commemce the business as Primary Dealer on 7th June 2007. IDBI Gilts Limited commenced its operations as Primary Dealer w.e.f. 24th July 2007.
The Company is mainly into the following activities:
Underwriting in auctions of primary issuance and trading in Government Dated Securities, State Government Loans, Corporate Bonds and Treasury Bills.
Market Making in Government Securities.
Bidding in Auctions.
Retailing of Debt Securities.
Dealing in Interest Rate Swaps.
Dealing in Equity – Proprietary Book.
Dealing in Commercial Paper & Certificates of Deposits.
Dealing in Call Money Market.
Dealing in Repo Market.
Dealing in CBLO Market.
The core functions of Primary Dealers are as follows:
to underwrite 100% of the GOI Borrowing Program.
to participate in auctions of GOI Dated Securities and State Development Loans.
to subscribe to the auctions of Treasury Bills held every week.
to carry on market making in Government Securities in the secondary market.
to support RBI’s sterilization measures like Market Stabilization Scheme and Open Market Operations.
