Friday September 29 2017

News Source: Global Disclosures

Focus: Position Limits (including MIFID II)

Type: General

Country: India




The Securities and Exchange Board of India (SEBI) have on the 26 September 2017, published a Circular on Foreign Portfolio Investors (FPIs) in commodity derivatives in the International Financial  Services  Centre (IFSC).

Based on the representations received from the exchanges operating in IFSC and after consultations with Government of India and Reserve Bank of India (RBI), it has been decided that FPIs shall be permitted to participate in commodity derivatives contracts traded in stock exchanges in IFSC subject to following conditions:

  • The participation would be limited to the derivatives contracts in non-agricultural commodities only.
  • Contracts would be cash settled on the settlement price determined on overseas exchanges
  • All the transactions shall be denominated in foreign currency only.

The provisions of the circular shall come into effect from 26th September 2017.

Please click on the above link for more information.