Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020

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....erivative Contracts) Regulations, 2020 No. FEMA. 399/RB-2020.-In exercise of the powers conferred by clause (h) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank makes the following regulations, to promote orderly development and maintenance of foreign exchange market in India, namely: 1. Short title and commencement i) These regu....

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....ative contract post with or collect from each other (whether directly or through a third party) to cover some or all of the credit risk that the provider of the collateral poses for the receiver of the collateral; v) "Permitted derivative contract" means: a) Foreign Exchange Derivative Contract undertaken in terms of the Foreign Exchange Management (Foreign Exchange Derivative Co....

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....he words and expressions used but not defined in these Regulations shall have the same meanings respectively as assigned to them in the Act. 3. Prohibition Save as otherwise provided in these regulations and any other regulations issued under the Act and in force on the date of commencement of these regulations, no person shall post or collect margin for derivative contracts and pay or recei....