Irrevocable Payment Commitment: custodian banks may issue IPCs for FII purchases under PIS, subject to regulatory exposure limits. The Regulations add a definition of Irrevocable Payment Commitment (IPC) as an irrevocable confirmation by a custodian bank to a stock exchange/clearing corporation to meet payment obligations on buy transactions, and authorise custodian banks to issue IPCs for registered FII clients for purchases under the Portfolio Investment Scheme. IPCs issued prior to receipt of customer funds are to be reckoned in the custodian bank's Capital Market Exposure and must comply with regulatory exposure limits and Reserve Bank/DBOD directions.
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.
Irrevocable Payment Commitment: custodian banks may issue IPCs for FII purchases under PIS, subject to regulatory exposure limits.
The Regulations add a definition of Irrevocable Payment Commitment (IPC) as an irrevocable confirmation by a custodian bank to a stock exchange/clearing corporation to meet payment obligations on buy transactions, and authorise custodian banks to issue IPCs for registered FII clients for purchases under the Portfolio Investment Scheme. IPCs issued prior to receipt of customer funds are to be reckoned in the custodian bank's Capital Market Exposure and must comply with regulatory exposure limits and Reserve Bank/DBOD directions.
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