Kerala HC: Revisional Power U/S 263 Not Invocable When AO Grants Sec 32AC Deduction After Inquiry  ||  J&K&L HC: Section 359 BNSS Doesn’t Limit High Court’s Inherent Power U/S 528 to Quash FIRs  ||  Bombay HC: BMC Ban on Footpath Cooking via Gas/Grill Doesn’t Apply to Vendors Using Induction  ||  Madras HC: Buyer Not Liable for Seller’s Tax Default; Purchase Tax Can’t Be Imposed under TNGST Act  ||  Kerala HC: Oral Allegations Alone Insufficient to Sustain Bribery Charges Against Ministers  ||  Delhi HC: CCI Cannot Levy Interest Retrospectively Before Valid Service of Demand Notice  ||  Delhi HC: VC Rules Don’t Shield PMLA Accused From Physically Appearing Before ED in Probe  ||  SC: If Complaint Reveals Cognizable Offence, Magistrate May Order FIR Registration U/S .156(3) CrPC  ||  SC: Private Buses Can’t Operate on Inter-State Routes Overlapping Notified State Transport Routes  ||  Delhi HC: Writ Petition Not Maintainable Against Provisional Attachment When PMLA Remedy Exists    

Reporting Platform for OTC Derivatives - Transactions undertaken by IFSC Banking Units (IBUs) and non-deliverable derivative contracts (involving Rupee or otherwise)- (Reserve Bank of India) (18 May 2020)

MANU/RMIC/0078/2020

Banking

1. In terms of A.P. (DIR Series) circular no.23 dated March 27, 2020, banks in India having an Authorised Dealer Category-1 license under FEMA, 1999, and operating IBUs have been permitted, with effect from June 1, 2020, to offer non-deliverable derivative contracts (NDDCs) involving the Rupee, or otherwise, to persons not resident in India. Banks can undertake such transactions through their IBUs or through their branches in India or through their foreign branches (in case of foreign banks operating in India, through any branch of the parent bank).

2. All foreign exchange non-deliverable derivative contracts (involving Rupee or otherwise) undertaken by banks in India through their IBUs or through their branches in India or through their foreign branches (in case of foreign banks operating in India, through any branch of the parent bank), shall be reported to CCIL's reporting platform with effect from June 1, 2020.

3. Further, in terms of circular no. DBR.IBD.BC.14570/23.13.004/2014-15 dated April 01, 2015, as amended from time to time, IBUs were permitted to undertake derivative transactions including structured products that the banks operating in India have been allowed to undertake as per the extant RBI directions. For undertaking any other derivative product, IBUs are required to obtain the prior approval of the RBI.

4. RBI has mandated that all OTC foreign exchange, interest rate and credit derivative transactions, both inter-bank and client, will be reported to CCIL's trade reporting platform. The matter has been further discussed with banks operating IBUs and CCIL. Accordingly, it has been decided that IBUs shall report all OTC foreign exchange, interest rate and credit derivative transactions - both interbank and client transactions - undertaken by them to CCIL's reporting platform with effect from June 1, 2020. Additionally, as a one-time measure to ensure completeness of data, all matured and outstanding transactions as on May 31, 2020, shall be reported by July 31, 2020.

5. The Clearing Corporation of India (CCIL) shall communicate the methodology of such reporting to its members.

6. These directions are issued under the powers vested in the Reserve Bank of India under Section 45W of the Reserve Bank of India Act, 1934 and is without prejudice to permissions/approvals, if any, required under any other law.

Tags : OTC DERIVATIVES   TRANSACTIONS   IBUS  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved