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The International Financial Services Centres Authority amends the circular on over-the-counter derivatives at International Financial Services Centres for Indian Government Bonds and State Development Loans. Banking Units holding a Foreign Portfolio Investor certificate act as market makers for Offshore Derivative Instruments. All Banking Units act as market makers for other over-the-counter derivatives. Banking Units issue Offshore Derivative Instruments in compliance with Securities and Exchange Board of India rules. Banking Units share a soft copy of the data on Offshore Derivative Instruments with the Authority from the date of the circular.
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International Financial Services Centres Authority
F.No.110/IFSCA/Banking Regulation/2021-22/7
October 5, 2021
To All Banking Units
Dear Sir/Madam,
Subject: OTC derivatives at IFSC – Amendment- OTC derivatives on Indian Government Bonds (IGBs) and State Development Loans (SDLs)
Banking Units (BUs) may please refer to the Authority’s circular no.No.110/IFSCA/Banking Regulation/2020-21/2 dated December 4, 2020
Contents of sub para (i) entitled "Market makers" to be replaced with the following:
Offshore Derivative Instruments (ODIs) – Banking Units holding a Foreign Portfolio Investor (FPI) certificate under the provisions of the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 dated September 23, 2019 (as amended)
Other OTC derivatives – All Banking Units
The following to be appended under the column entitled "Modification" (before Notes)
Offshore Derivative Instruments (ODIs) on Indian Government Bonds (IGBs) and State Development Loans (SDLs)
Offshore Derivative Instruments (ODIs) shall be issued in compliance with the provisions of the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 dated September 23, 2019 (as amended) including reporting of data on ODIs to the Securities and Exchange Board of India.
Eligible BUs are directed to share a soft copy of the data on ODIs being reported to SEBI to ibu-reports@ifsca.gov.in from the date of this circular
BUs are directed to ensure compliance with the provisions of this circular.
Yours faithfully
(Supriyo Bhattacharjee)
General Manager
supriyo.b@ifsca.gov.in
