Examples of Held for Trading in a sentence
The capital charge for Held for Trading (HFT) and Available for Sale (AFS) portfolios is computed as per Reserve Bank of India prudential guidelines.
Investments are categorised as Held to Maturity (‘HTM’), Available for Sale (‘AFS’) and Held for Trading (‘HFT’) in accordance with the RBI guidelines based on intent at the time of acquisition.
All fresh investments under Non-SLR category should be classified under Held for Trading (HFT) / Available for Sale (AFS) categories only and marked to market as applicable to these categories of investments.
Investments are designated as Held for Trading and fair valued based on the policies described under the heading “Valuation of Investments”.
The individual scrips in the Held for Trading category will be marked to market at monthly or at more frequent intervals and provided for as in the case of those in the Available for Sale category.
The securities to be lent shall be limited to securities lodged under the account Held for Trading (HFT) Financial Assets and Available for Sale (AFS) Financial Assets.
For this purpose, the portion of the Available for Sale and Held for Trading portfolio intended to be hedged must be identified and carved out for monitoring purposes.
For the present, only the interest rate risk inherent in the government securities classified under the Available for Sale and Held for Trading categories will be allowed to be hedged.
The hedge is clearly identified with the underlying government securities in the Available for Sale and Held for Trading categories.
Market risk arises on financial instruments, which are measured at fair value in the trading book.Strategy and ProcessesThe Bank maintains capital for market risk on Trading book which comprises of Held for Trading (HFT) and Available for Sale (AFS).