Margin lending to FPIs permitted for government securities settlement, subject to banks' credit risk frameworks. Banks in India holding an Authorised Dealer Category 1 licence may lend to Foreign Portfolio Investors to enable placement of margins with the central counterparty for settlement of government securities (including Treasury Bills and State Development Loans) transacted outside recognised exchanges; such lending must follow the banks' credit risk management frameworks and the change is effected by amendments to the foreign exchange regulatory framework, effective immediately.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Margin lending to FPIs permitted for government securities settlement, subject to banks' credit risk frameworks.
Banks in India holding an Authorised Dealer Category 1 licence may lend to Foreign Portfolio Investors to enable placement of margins with the central counterparty for settlement of government securities (including Treasury Bills and State Development Loans) transacted outside recognised exchanges; such lending must follow the banks' credit risk management frameworks and the change is effected by amendments to the foreign exchange regulatory framework, effective immediately.
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