Derivative margin permissions allow authorised dealers to manage cross-border, customer, overseas-branch and specified inter-dealer margin arrangements. Regulation 4 permits authorised dealers, subject to Reserve Bank directions, to post and collect margin in India and outside India for permitted ... Summary
Derivative margin permissions allow authorised dealers to manage cross-border, customer, overseas-branch and specified inter-dealer margin arrangements.
Regulation 4 permits authorised dealers, subject to Reserve Bank directions, to post and collect margin in India and outside India for permitted derivative contracts with persons resident outside India and to receive or pay interest on such margin. It extends to specified arrangements between authorised dealers, derivative transactions of overseas branches and International Financial Services Centre Banking Units, and customer-related permitted derivative contracts. Margin and interest transactions may be undertaken through authorised dealers, overseas branches, or overseas head offices, subject to applicable terms and conditions.
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