TaxTMI 
TaxTMI 
Introduction of Rupee derivatives at International Financial Services Centres (IFSC)
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....annexed (Annex I). 4. Currency options contracts may be listed on recognised stock exchanges at IFSCs subject to the Currency Options in International Financial Services Centre (Reserve Bank) Directions, 2020 (Notification No.FMRD.FMD.02 /ED(TRS)-2020 dated January 20, 2020), issued by the Reserve Bank of India, a copy of which is annexed (Annex II). 5. Necessary amendments to the Foreign Exchange Management (International Financial Services Centre) Regulations, 2015 (Notification No. FEMA. 339/2015-RB dated 2nd March, 2015) have been notified in the Official Gazette vide Gazette Id no.CG-DL-E-17012020-215530 dated January 16, 2020 a copy of which is annexed (Annex-III). 6. Amendments to Currency Futures (Reserve Bank) Directions, 2008 (Notification No.FED.1/DG(SG) - 2008 dated August 6, 2008), as amended from time to time, and Exchange Traded Currency Options (Reserve Bank) Directions, 2010 (Notification No. FED.01/ED(HRK) - 2010 dated July 30, 2010), as amended from time to time, is annexed as Annex IV & V respectively. 7. The above Directions have been issued under Section 45W of the Reserve Bank of India Act, 1934 and the above Regulation have been issued under Sect....
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....ecurities and Exchange Board of India established under the Securities and Exchange Board of India Act, 1992 (15 of 1992). viii. 'FBIL Reference rate' means the rates of currency pairs computed and published on a daily basis, on all Mumbai business days, by Financial Benchmarks India Private Limited. ix. The words and expressions used but not specified in these directions shall have the same meanings respectively assigned to them in the Act. 3. Permission - i. Currency futures contracts are permitted in any currency pair involving the Rupee or otherwise. ii. Persons resident in India, as defined in clause (v) of section 2 of Foreign Exchange Management Act, 1999 (Act 42 of 1999), unless specifically permitted by the Reserve Bank, shall not be eligible to undertake currency futures contracts. iii. Persons resident outside India, as defined in section 2(w) of Foreign Exchange Management Act, 1999 (Act 42 of 1999), shall be eligible to undertake currency futures contracts. 4. Features of currency futures - Currency futures shall have the following features: i. All currency futures contracts shall be settled in a currency other than the Indian Rupee. ii. T....
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....dia. (T. Rabi Sankar) Executive Director ANNEX II Notification No. FMRD.FMD.02 /ED(TRS)-2020 dated January 20, 2020 Currency Options in International Financial Services Centre (Reserve Bank) Directions, 2020 The Reserve Bank of India having considered it necessary in public interest and to regulate the financial system of the country to its advantage, in exercise of its powers conferred by section 45W of the Reserve Bank of India Act, 1934 and of all the powers enabling it in this behalf, hereby gives the following directions to all the persons dealing in currency options listed on recognised stock exchange in the International Financial Services Centres (IFSCs). 1. Short title and commencement These directions may be called the Currency Options in International Financial Services Centres (Reserve Bank) Directions, 2020 and they shall come into force with effect from the date of its publication. 2. Definitions i. 'Act' means the Reserve Bank of India Act, 1934. ii. 'Currency Option' means a standardised foreign exchange derivative contract traded on recognised stock exchanges in IFSCs where the purchaser of the option has the right b....
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....ed stock exchange in consultation with SEBI. iii. All currency option contracts shall be settled in a currency other than the Indian Rupee. iv. The settlement price for currency option contracts involving Rupee shall be the FBIL Reference rate, where available, on the expiry date of the contract. For currency option contracts involving Rupee where FBIL reference rates are not available and for other currency pairs, the mechanism for arriving at the settlement price shall be decided by the recognized stock exchange in consultation with SEBI. 5. Position limits i. The position limits for various classes of participants in the currency option market shall be subject to the guidelines issued by SEBI. ii. IFSC Banking Units (as specified in circular no. RBI/2014-15/533.DBR.IBD.BC.14570/23.13.004/2014-15 dated April 1, 2015 (as amended from time to time)) shall operate within prudential limits, as laid down in the instructions issued by the Reserve Bank of India. 6. Risk Management measures The trading of currency options shall be subject to maintaining initial, extreme loss and calendar spread margins and the Clearing Corporation / Clearing House of the recogn....
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....cipal regulations were published in the Gazette of India - Extraordinary - Part-II, Section 3, Sub-Section (i) on March 03, 2015 vide G.S.R.No.218(E). ANNEX IV Notification No. FMRD.FMD.03/ED(TRS)-2020 dated January 20, 2020 Currency Futures (Reserve Bank) (Amendment) Directions, 2020 The Reserve Bank of India having considered it necessary in public interest and to regulate the financial system of the country to its advantage, in exercise of its powers conferred by section 45W of the Reserve Bank of India Act, 1934 and of all the powers enabling it in this behalf, hereby gives the following directions to all the persons dealing in currency futures. 1. Short title and commencement of the directions These directions may be called the Currency Futures (Reserve Bank) (Amendment) Directions, 2020 and they shall come into force with effect from January 20, 2020. 2. Amendment to the Currency Futures (Reserve Bank) Directions, 2008 i. Paragraph 4(e) shall be substituted by the following: "e. The settlement price for currency futures contracts involving Rupee shall be the FBIL Reference rate, where available, on the last trading day of the contract. For currency ....