06 September 2013
It is sale and repurchase transaction executed on agreement basis. Repos are classified as a money-market instrument. They are usually used to raise short-term capital
For the party selling the security (and agreeing to repurchase it in the future) it is a repo; for the party on the other end of the transaction, (buying the security and agreeing to sell in the future) it is a reverse repurchase agreement.
A form of short-term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day.