For the buyer, a repo transaction provides a secure investment opportunity with low-risk securities such as government bonds. Financial institutions engage in repo transactions to meet short-term cash needs. So, what is a repo transaction? Repo/reverse repo transactions are investment instruments used by organizations seeking funds through the sale/purchase of financial instruments with a commitment to repurchase/resell. A repo involves selling a security with a promise to repurchase it at the initial value date, while a reverse repo involves buying a security with a promise to resell it at the value date. In the Debt Instruments Market, there are different repo/reverse repo markets where various securities are traded.