Margin for Derivative Contracts

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.... 2021 on Margin for Derivative Contracts. 2. The A. P. (DIR Series) Circular No.10 dated February 15, 2021 on Margin for Derivative Contracts were issued to allow posting and collection of margin for permitted derivative contracts between a person resident in India and a person resident outside India. The instructions have been reviewed based on market feedback and the Reserve Bank of India (Margin for Derivative Contracts) Directions, 2024 are being issued herewith. 3. These Directions shall come into force with immediate effect and shall supersede the A. P. (DIR Series) Circular No. 10 dated February 15, 2021. 4. For the purpose of these Directions, Authorised Dealers shall mean Authorised Dealer Category-I (AD Cat-I) banks and A....

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....ations, 2020 (Notification no. FEMA.399/RB-2020 dated October 23, 2020), as amended from time to time. (ii) "Certificate of Deposit" shall have the meaning assigned in paragraph 2(a)(iii) of the Master Direction - Reserve Bank of India (Certificate of Deposit) Directions, 2021 dated June 04, 2021, as amended from time to time. (iii) "Commercial Paper" shall have the meaning assigned in paragraph 2(a)(iv) of the Master Direction - Reserve Bank of India (Commercial Paper and Non-Convertible Debentures of original or initial maturity upto one year) Directions, 2024 dated January 03, 2024, as amended from time to time. 2.2 Words and expressions used, but not defined in these Directions, shall have the same m....

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....mum credit rating of A1 issued by a rating agency registered with the Securities and Exchange Board of India. If different ratings are accorded by two or more credit rating agencies, then the lowest rating shall be reckoned. 6. Margin posted and collected outside India shall be in the form of: (i) Freely convertible foreign currency; and (ii) Debt securities issued by foreign sovereigns with a credit rating of AA- and above issued by S&P Global Ratings / Fitch Ratings or Aa3 and above issued by Moody's Investors Service. If different ratings are accorded by two or more credit rating agencies, then the lowest rating shall be reckoned. 7. In case of Authorised Dealers choosing to comply with the margin requ....