The new rules will come into effect from June 14, said the Central bank in an official statement
BS Web Team |
Last Updated at June 7, 2021 15:57 IST
The Reserve Bank of India (RBI) on Monday announced that it has decided to provide operational flexibility for reporting of Over the counter (OTC) transactions in Government securities (G-Sec) transactions undertaken by the Foreign Portfolio Investors (FPIs).
The new rules will come into effect from June 14.
“FPIs/custodian banks must report their transactions to the Negotiated Dealing System – Order Matching (NDS-OM) platform within three hours after the close of trading hours for the Government securities market,” said the Central Bank in an official statement.
It further said information about trades undertaken by domestic counterparties with FPIs must be disseminated by the Clearcorp Dealing Systems (India) Ltd. (CDSL) after one leg of the trade is reported on the NDS-OM platform by the domestic counterparty with a suitable qualifier to indicate that the trade is awaiting counterparty confirmation.
“Domestic market participants, including domestic counterparties to transactions with FPIs, shall continue to report transactions to the NDS-OM platform as per extant practice,” RBI said.
OTC transactions in G-Secs (including State Development Loans and Treasury Bills) by market participants other than on the NDS-OM platform were till now required to be reported to the ‘NDS-OM’ platform for settlement.
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First Published: Mon, June 07 2021. 15:56 IST