MANU/SIPM/0004/2018
Ministry : Securities and Exchange Board of India
Department/Board : Investment Management Department
Circular No. : IMD/FPIC/CIR/P/2018/46
Date : 08.03.2018
Notification/ Circulars Referred : Circular CIR/MRD/DRMNP/35/2013 dated December 05, 2013 MANU/SSMD/0081/2013;Circular CIR/MRD/DRMNP/11/2015 dated June 12, 2015 MANU/SSMD/0007/2015;Circular CIR/MRD/DRMNP/2/2014 dated January 20, 2014 MANU/SSMD/0006/2014
Citing Reference:
Circular CIR/MRD/DRMNP/35/2013 dated December 05, 2013 MANU/SSMD/0081/2013 Referred
Circular CIR/MRD/DRMNP/11/2015 dated June 12, 2015 MANU/SSMD/0007/2015 Referred
Circular CIR/MRD/DRMNP/2/2014 dated January 20, 2014 MANU/SSMD/0006/2014 Referred
To,
1. All Foreign Portfolio Investors (through their designated Custodians of Securities)
2. The Depositories (NSDL and CDSL)
3. The Recognized Stock Exchanges
Dear Sir / Madam,
Separate limit of Interest Rate Futures (IRFs) for Foreign Portfolio Investors (FPIs)
1. Reserve Bank of India, in its Statement on Developmental and Regulatory Policies, released on August 02, 2017, proposed to allocate a separate limit of INR 5,000 crore to Foreign Portfolio Investors (FPIs) for taking long position in Interest Rate Futures (IRFs) in order to facilitate further market development and to ensure that FPIs' access to bond futures remains uninterrupted during the phase when FPI limits on Government securities are under auction.
2. Accordingly, it has been decided to allocate a separate limit of INR 5,000 crore to FPIs for taking long position in IRFs. Para 13 (d) of Annexure 1 to SEBI Circular CIR/MRD/DRMNP/35/2013 dated December 05, 2013 and Para 13 (c) of Annexure 1 to SEBI Circular CIR/MRD/DRMNP/11/2015 dated June 12, 2015 stand partially modified to that extent.
3. This limit will be calculated as follows: