Foreign sovereign securities as collateral permitted for FII derivatives transactions, subject to SEBI guidelines and RBI approvals. FIIs are permitted to offer foreign sovereign securities with AAA rating as collateral to recognised stock exchanges in India for derivatives transactions; SEBI will issue operational guidelines and recognised exchanges must secure any necessary approvals from the Reserve Bank under the Foreign Exchange Management Act. Amendments to the relevant FEMA regulations will be issued and Authorised Dealer Category I banks should inform their constituents. Directions are issued under sections 10(4) and 11(1) of FEMA, 1999.
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.
Foreign sovereign securities as collateral permitted for FII derivatives transactions, subject to SEBI guidelines and RBI approvals.
FIIs are permitted to offer foreign sovereign securities with AAA rating as collateral to recognised stock exchanges in India for derivatives transactions; SEBI will issue operational guidelines and recognised exchanges must secure any necessary approvals from the Reserve Bank under the Foreign Exchange Management Act. Amendments to the relevant FEMA regulations will be issued and Authorised Dealer Category I banks should inform their constituents. Directions are issued under sections 10(4) and 11(1) of FEMA, 1999.
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