The following deals were executed between SBBJ and PNB on January 21, 2011: Deal 1: Ten thousands

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The following deals were executed between SBBJ and PNB on January 21, 2011:

Deal 1: Ten thousands GOI-2012 Series bonds of face value ₹100 each were purchased by SBBJ from PNB at a price of  ₹105 per bond deal is to be settled immediately.

Deal 2: Twenty thousands GOI-2015 Series bonds of face value  ₹1,000 each were purchased by SBBJ from PNB at a price of  ₹1020 per bond deal to be settled immediately. On the same day, both these parties entered into a 30 days forward on the same securities at a price of  ₹1010 per bond, in this deal SBBJ was the seller and PNB was the buyer.

Are both deals 1 and 2 REPO deals? Explain.

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Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

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