|
RBI/2019-20/145
A.P. (DIR Series) Circular No.17
January 20, 2020
All Authorised Dealers
Madam / Sir,
Introduction of Rupee
derivatives at International Financial Services Centres (IFSC)
Attention
of Authorised Dealers is invited to the Foreign Exchange Management
(International Financial Services Centre) Regulations, 2015 (Notification No.
FEMA. 339/2015-RB dated 2nd March, 2015).
2. As announced in the
statement on Developmental and Regulatory Policies dated October 4, 2019, it has
now been decided to allow Rupee derivatives (with settlement in foreign
currency) to be traded in International Financial Services Centres (IFSCs),
starting with Exchange Traded Currency Derivatives(ETCD).
3. Currency
futures contracts may be listed on recognised stock exchanges at IFSCs subject
to the Currency Futures in International Financial Services Centre (Reserve
Bank) Directions, 2020 (Notification No.FMRD.FMD.01/ED(TRS)-2020 dated January
20, 2020), issued by the Reserve Bank of India, a copy of which is annexed
(Annex I).
4. Currency options contracts may be listed on recognised
stock exchanges at IFSCs subject to the Currency Options in International
Financial Services Centre (Reserve Bank) Directions, 2020 (Notification
No.FMRD.FMD.02/ED(TRS)-2020 dated January 20, 2020), issued by the Reserve Bank
of India, a copy of which is annexed (Annex II).
5. Necessary amendments
to the Foreign Exchange Management (International Financial Services Centre)
Regulations, 2015 (Notification No. FEMA. 339/2015-RB dated 2nd March, 2015)
have been notified in the Official Gazette vide Gazette Id
no.CG-DL-E-17012020-215530 dated January 16, 2020 a copy of which is annexed
(Annex-III).
6. Amendments to Currency Futures (Reserve Bank) Directions,
2008 (Notification No.FED.1/DG(SG) - 2008 dated August 6, 2008), as amended from
time to time, and Exchange Traded Currency Options (Reserve Bank) Directions,
2010 (Notification No. FED.01/ED(HRK) - 2010 dated July 30, 2010), as amended
from time to time, is annexed as Annex IV & V respectively.
7. The above
Directions have been issued under Section 45W of the Reserve Bank of India Act,
1934 and the above Regulation have been issued under Section 47 of the Foreign
Exchange Management Act, 1999 (42 of 1999).
8. The directions contained
in this circular have been issued under Sections 10(4) and 11(1) of the Foreign
Exchange Management Act, 1999 (42 of 1999) and are without prejudice to
permissions /approvals, if any, required under any other law.
Yours faithfully,
(Saswat Mahapatra)
Deputy General Manager (O-i-C)
|