MUMBAI, Nov 11: The Reserve Bank of India (RBI) has barred the 15 satellite dealers (SDs) in the government securities market from borrowing or lending in the inter-bank call money market.

The central bank will provide liquidity support to these SDs through the reverse repo (ready-forward deals) facility. This essentially revokes an old RBI stipulation which allowed these dealers to play in the inter bank call money market.

In a statement issued today, the RBI said, "On a review of the matter, it has been decided that the satellite dealers would be provided liquidity support from the Reserve Bank through reverse repos in central government securities and auction treasury bills up to 50 per cent of the outstanding stocks in gilts at the end of the previous working day''. Satellite dealers will be the second rung in the government securities and money market after the primary dealers.

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