Friday March 27 2015

News Source: Global Exchanges

Focus: Foreign Investment

Type: General




The Reserve Bank of India (RBI) has announced that after consultation with maker participants, it will permit settlements on T+2 basis for outright secondary market transactions in Government Securities undertaken by FPIs and reported on NDS-OM, subject to following conditions:

  • All sale and purchase transactions in Government securities, where at least one of the parties is an FPI, will be settled only on T+2 basis. These will include deals between a domestic entity and an FPI, deals between two FPIs of different custodians, deals between a custodian and its FPI Gilt Account Holder, and deals between two FPI Gilt account Holders of the same custodian.
  • All other trades not involving an FPI will continue to settle on T+1 basis.
  • Custodian bank of the FPI selling the security or the counterparty entity selling the security to the FPI will have to report the deal on trade date itself within the prescribed reporting time.
  • Custodian bank of the FPI buying the security can report the deal till next business day upto prescribed reporting time.

Click on the link above for further details.