RBI to allocate Separate limit of Interest Rate Futures (IRFs) for Foreign Portfolio Investors (FPIs)

Mar 05, 2018 | by Avantis RegTech Legal Research Team

The Reserve Bank of India vide notification dated March 01, 2018 has decided to allocate Separate limit of Interest Rate Futures (IRFs) for Foreign Portfolio Investors (FPIs). Accordingly, the FPI’s, registered with SEBI, shall be permitted to purchase or sell IRF’s subject to the following conditions:-

(i)       The aggregate long position of all FPIs, each of whom has a net long position in any IRF instrument, shall not exceed ₹ 5000 Crore, aggregated across all IRF instruments, and

(ii)     The total gross short (sold) position of any Foreign Portfolio Investor shall not exceed its consolidated long position in Government securities and Interest Rate Futures, at any point in time.

The limits prescribed for investment by FPIs in G-secs (currently ₹ 3,01,500/- Crore) will be exclusively available for investment in G-secs. All other terms and conditions of the extant IRF directions will remain unchanged.

[RBI/2017-18/137 FMRD.DIRD.6/14.03.001/2017-18]

URL: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/IRFFPI3731A951FD904C1E96F7201E2A6DF8ED.PDF


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