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Repurchase Agreement Template for India

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Key Requirements PROMPT example:

Repurchase Agreement

"I need a Repurchase Agreement under Indian law for use between our bank and multiple institutional investors, covering government securities transactions with flexible substitution rights and electronic trading provisions."

Document background
This document is used to establish legally binding terms for repurchase transactions (repos) in the Indian financial markets. A Repurchase Agreement is essential for entities engaging in secured lending transactions where securities are sold with an agreement to repurchase them at a future date. The agreement must comply with Reserve Bank of India (RBI) guidelines, particularly the RBI Repurchase Transactions (Repo) Directions, 2018, and other relevant Indian financial regulations. It covers crucial aspects such as eligible securities, pricing mechanisms, margin maintenance, default procedures, and settlement processes. This document is particularly relevant for transactions in government securities, corporate bonds, and other eligible securities as defined by regulatory authorities in India.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including registration details and regulatory status

2. Background: Context of the agreement and confirmation that parties have authority to enter into repo transactions

3. Definitions and Interpretation: Key terms used in the agreement, including regulatory defined terms and market standard definitions

4. Scope and Purpose: Overview of the repo facility and transaction structure

5. Purchase and Resale Obligations: Core obligations regarding the sale and repurchase of securities

6. Pricing and Payment Terms: Purchase price, repo rate, price differential calculations and payment mechanics

7. Securities Transfer and Custody: Mechanism for transfer of securities and custodial arrangements

8. Margin Maintenance: Requirements for maintaining margin, valuation methods, and margin calls

9. Representations and Warranties: Standard and transaction-specific representations by both parties

10. Events of Default: Circumstances constituting default and consequences

11. Close-out and Netting: Procedures for early termination and calculation of amounts due

12. Tax Provisions: Treatment of taxes, including stamp duty and withholding requirements

13. Governing Law and Jurisdiction: Specification of Indian law and jurisdiction details

Optional Sections

1. Income Payments and Corporate Actions: Handling of dividends, interest, and corporate actions during repo term - required if dealing with equity or corporate bonds

2. Substitution of Securities: Rights and process for substituting securities - include if flexibility in collateral management is desired

3. Agency Provisions: Required if any party acts as agent for undisclosed principals

4. Electronic Trading and Settlement: Include if transactions will be executed through electronic platforms

5. Break Clause: Optional early termination rights - include for longer-term repos

6. Force Majeure: Market disruption and force majeure provisions - recommended for master agreements

Suggested Schedules

1. Schedule 1 - Form of Transaction Notice: Standard form for confirming individual repo transactions

2. Schedule 2 - Eligible Securities: List of securities acceptable as collateral and any restrictions

3. Schedule 3 - Margin Percentages: Haircuts and margin requirements for different security types

4. Schedule 4 - Contact Details: Administrative and operational contact information

5. Schedule 5 - Forms of Power of Attorney: Standard forms for any required powers of attorney

6. Appendix A - Standard Settlement Instructions: Payment and securities settlement details

7. Appendix B - Pricing and Valuation Methods: Detailed methodology for pricing and valuation of securities

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















































Clauses


































Relevant Industries

Banking

Financial Services

Insurance

Asset Management

Securities Trading

Investment Banking

Corporate Treasury

Capital Markets

Relevant Teams

Treasury

Legal

Compliance

Risk Management

Trading

Operations

Settlement

Credit

Finance

Middle Office

Regulatory Reporting

Relevant Roles

Treasury Manager

Risk Officer

Legal Counsel

Compliance Officer

Trading Manager

Portfolio Manager

Settlement Officer

Credit Risk Manager

Chief Financial Officer

Operations Manager

Investment Manager

Regulatory Reporting Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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