Executive Summary:
This document contains the Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020, issued by the Reserve Bank of India. These regulations define rules for posting and collecting margins for derivative contracts. The regulations come into force from the date of their publication in the Gazette of India on October 28, 2020. They aim to promote the orderly development and maintenance of the foreign exchange market in India.
Key Points / Main Content:
* **Short Title and Commencement:**
* These regulations are called the Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020.
* They come into force upon publication in the Gazette of India.
* **Definitions:**
* "Act" refers to the Foreign Exchange Management Act, 1999.
* "Authorised dealer" means a person authorized under Section 10(1) of the Act.
* "Derivative" has the same meaning as in the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000.
* "Margin" means collateral posted or collected to cover credit risk in a derivative contract.
* "Permitted derivative contract" includes specific Foreign Exchange, Interest Rate, and Credit Derivative Contracts, and any other derivative contract specified by the Reserve Bank.
* "Reserve Bank" refers to the Reserve Bank of India.
* **Prohibition:**
* No person shall post or collect margin for derivative contracts or pay/receive interest on such margin without prior permission from the Reserve Bank, except as otherwise provided in these regulations or other regulations under the Act.
* **Permission for Authorised Dealers:**
* Authorised dealers may post and collect margin in India and outside India on their own account or on behalf of their customers for permitted derivative contracts with persons resident outside India, as specified by the Reserve Bank.
* Authorised dealers may receive and pay interest on margin posted and collected on their own account or on behalf of their customers for permitted derivative contracts with persons resident outside India.
Impact Analysis:
* **Authorised Dealers:**
* *Impact:* Authorised dealers are granted specific permissions to post/collect margins and pay/receive interest for permitted derivative contracts with non-residents, subject to Reserve Bank directions.
* *Action Required:* Comply with the regulations and any directions issued by the Reserve Bank regarding the form and manner of posting and collecting margins.
* **Persons engaging in Derivative Contracts:**
* *Impact:* Individuals and entities engaging in derivative contracts are impacted by the regulations, which govern the posting and collection of margins.
* *Action Required:* Ensure compliance with the regulations, including obtaining prior permission from the Reserve Bank where required for margin activities related to derivative contracts.
Key Entities Referenced
Foreign Exchange Management Act, 1999: An act of the Indian Parliament to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Foreign Exchange Management Margin for Derivative Contracts Regulations, 2020: Regulations issued by the Reserve Bank of India pertaining to margin requirements for derivative contracts under the Foreign Exchange Management Act.
Reserve Bank of India: The central bank of India.
Mumbai, Maharashtra: The city where the Financial Markets Regulation Department, Central Office of the Reserve Bank of India is located and the place from where notification was released.
Foreign Exchange Management Permissible Capital Account Transactions Regulations, 2000: Regulations pertaining to permissible capital account transactions under the Foreign Exchange Management Act.
Foreign Exchange Derivative Contracts Regulations, 2000: Regulations pertaining to foreign exchange derivative contracts.
Master DirectionRisk Management and Interbank Dealings: A directive providing guidelines on risk management and interbank dealings.
Rupee Interest Rate Derivatives Reserve Bank Directions, 2019: Reserve Bank directions regarding Rupee Interest Rate Derivatives.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-28102020-222786
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 451] मई कदल्ली, बुधर्ार, अक्त बू र 28, 2020/कार्तकव 6, 1942
No. 451] NEW DELHI, WEDNESDAY, OCTOBER 28, 2020/KARTIKA 6, 1942
भारतीय ररज़र् व बकैं
(जर्त्त ीय बािार जर्जमय म जर्भाग
(केन्द रीय कायालव य
अजधसचू मा
ुम् बई, 23 अक् तूबर, 2020
जर्दिे ी रु ा जर्जमय म प्रबधं म (डरे रर्रे िर् सजं र्दाओं हते ु ार्िमव
जर्जमय ार्ली, 2020
स.ंफे ा.399/आरबी-2020.—जर्देिी ुरा जर्जमय म प्रबंधम अजधजमय , 1999 (सम 1999 का 42 की
धारा 47 की उप-धारा (2 के खंड (एच) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, भारतीय ररज़र्व बैंक जमम्म जलजखत
जर्जमय ार्ली तैयार करता ह ै ताकक भारत ें जर्देिी ुरा बािार के जर्जधर्त जर्कास और अमरु क्षण को बढार्ा कदया िा
सके, यथा:
1. लघ ुिीर्कव और प्रर्तमव
i) इस जर्जमय ार्ली को जर्देिी ुरा प्रबंधम (डेररर्ेरिर् संजर्दाओं हते ु ार्िवम जर्जमय ार्ली, 2020 कहा िाएगा।
ii) ये जर्जमय ार्ली भारत के रािपत्र ें प्रकािम की तारीख से लागू होगी।
2. पररभार्ाए ं
इम जर्जमय ों ें िब तक संदभ वसे अन्द यथा अपेजक्षत मह हो तो:
5229 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
i) “अजधजमय ” का आिय ह ैजर्देिी ुरा प्रबंधम अजधजमय , 1999 (सम 1999 का 42 ;
ii) “प्राजधकृत डीलर” का आिय ह ै इस अजधजमय की धारा 10 की उप-धारा (1 के तहत प्राजधकृत डीलर के रूप ें
प्राजधकृत ककया गया व् यजि;
iii) “डेररर्ेरिर्” का र्ही आिय रहगे ा िो स य-स य पर यथासंिोजधत जर्देिी रु ा प्रबंधम (पूंिी खात े ें अमु ेय लेमदमे
के जर्जमय 2 के उप-जर्जमय (डीए ें जमधावररत ककया गया है;
iv) “ ार्िवम” का आिय ह ै र्ह कोलेिरल िो ककसी डेररर्ेरिर् संजर्दा के पक्षकारों द्वारा एक दसू रे के पक्ष ें दि व की िाती ह ै
या एक दसू रे स ेसंग्रह की िाती ह ै(चाह ेयह सीध े ही की िाए अथर्ा ककसी तृतीय पक्ष के ाध्य से ताकक कोलेिर पामेर्ाल े
के जलए कोलेिरल प्रदाम करमे र्ाले को होमे र्ाले क्रेजडि िोजख के कुछ भाग या सम् पूण व िोजख को कर्र ककया िा सके;
v) “अमु त डेररर्ेरिर् संजर्दा” का आिय ह:ै
क. जर्देिी ुरा प्रबंधम (जर्देिी ुरा डेररर्ेरिर् संजर्दाएं जर्जमय ार्ली, 2000 और ास्ट् िर जमदिे –
िोजख प्रबंधम और अन्दत र बकैं डीिंलगं , स य-स य पर यथासंिोजधत, के अमुसार जमष्प ाकदत जर्देिी
ुरा डेररर्ेरिर् संजर्दा;
ख. रुपया ब् याि दर डेररर्ेरिर् (ररज़र्व बैंक जमदेि, 2019 (अजधसूचमा सं. एफए आरडी.डीआईआरडी.
20/2019 कदमांक 26 िूम 2019 , स य-स य पर यथासंिोजधत, के अमुसार जमष्प ाकदत रुपया ब् याि दर
डेररर्ेरिर् संजर्दा,
ग. अजधसूचमा सं. आईडीए डी.पीसीडी.सं.10/14.03.04/2012-13 कदमांक 7 िमर्री 2013 के अमुसार
जमष्प ाकदत क्रेजडि डेररर्ेरिर् संजर्दा; और
घ. ररज़र्व बैंक द्वारा जमधावररत की िामे र्ाली कोई भी अन्द य डेररर्रे िर् संजर्दा;
vi) “ररज़र्व बैंक” का आिय ह ै स य-स य पर यथासंिोजधत भारतीय ररज़र्व बैंक अजधजमय , 1934 (सम 1934 का 2 की
धारा 3 की उप-धारा (1 के तहत संस्ट् थाजपत भारतीय ररज़र्व बैंक;
vii) इम जर्जमय ों ें प्रयुक् त ककन्द तु पररभाजर्त मह ककए गए िब् दों और अजभव् यजियों का क्र ि: र्ही अथव रहगे ा िो
अजधजमय ेंजमधावररत कर कदया गया ह।ै
3. जमर्धे
इम जर्जमय ों और इस अजधजमय के तहत िारी और इम जर्जमय ों के प्रर्तवम ें आमे की तारीख तक जर्द्य ाम अन्दय
जर्जमय ों ें ककए गए अन्द यथा प्रार्धामों के बार्िूद, कोई भी व् यजि ररज़र् व बैंक स े पर्ू ावमु जत जलए जबमा डेररर्ेरिर्
संजर्दाओं के जलए ार्िवम की प्रजर्जि या संग्रह मह करेगा और ऐसे ार्िवम पर ब् याि का भगु ताम अथर्ा प्राजन मह करेगा।
4. अम ु जत
इस अजधजमय के तहत ररज़र्व बैंक द्वारा िारी और र्तव ाम स य ें लाग ू ककसी भी अन्द य जर्जमय ें जमजहत ककसी भी त्य
और इस बारे ेंररज़र्व बैंक द्वारा िारी जमदेिों की ितों के बार्िूद, प्राजधकृत डीलर:
i) भारत के बाहर के जमर्ासी ककसी व् यजि के साथ अमु त डेररर्ेरिर् संजर्दा करके अपम े खाते ें या अपमे ग्राहकों की
तरफ से भारत ें और भारत के बाहर ार्िवम को दिव या ार्िवम का संग्रह ररज़र्व बैंक द्वारा जमर्दष्व ि प्रकार और तरीके
से करेगा;
और
ii) अमु त डेररर्ेरिर् ें भारत स ेबाहर के ककसी जमर्ासी व् यजि के साथ संजर्दा हते ु अपम े खाते या अपमे ग्राहकों की तरफ
से दिव और संग्रह ककए गए ार्िवम पर ब् याि प्रा त करेगा और ब् याि का भगु ताम करेगा।
िंडंपल भांजडया, हाप्रबंधक (प्रभारी अजधकारी
[जर्ज्ञापम-III/4/असा./319/2020-21][भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
RESERVE BANK OF INDIA
(Financial Markets Regulation Department)
(CENTRAL OFFICE)
NOTIFICATION
Mumbai, the 23rd October, 2020
Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020
No. FEMA. 399/RB-2020.—In exercise of the powers conferred by clause (h) of sub-section (2)
of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank makes the
following regulations, to promote orderly development and maintenance of foreign exchange market in
India, namely:
1. Short title and commencement
i) These regulations may be called the Foreign Exchange Management (Margin for Derivative Contracts)
Regulations, 2020.
ii) They shall come into force from the date of their publication in the Gazette of India.
2. Definitions
In these Regulations, unless the context requires otherwise:
i) “Act” means the Foreign Exchange Management Act, 1999 (42 of 1999);
ii) “Authorised dealer” means a person authorised as authorised dealer under subsection (1) of section 10 of
the Act;
iii) “Derivative” shall have the same meaning as assigned to it in sub-regulation (da) of regulation 2 of the
Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, as amended
from time to time;
iv) “Margin” means the collateral that the parties to a derivative contract post with or collect from each other
(whether directly or through a third party) to cover some or all of the credit risk that the provider of the
collateral poses for the receiver of the collateral;
v) “Permitted derivative contract” means:
a) Foreign Exchange Derivative Contract undertaken in terms of the Foreign Exchange Management
(Foreign Exchange Derivative Contracts) Regulations, 2000 and Master Direction–Risk
Management and Inter-bank Dealings, as amended from time to time,
b) Interest Rate Derivative Contract undertaken in terms of the Rupee Interest Rate Derivatives
(Reserve Bank) Directions, 2019 (Notification no. FMRD.DIRD.20/2019 dated June 26, 2019), as
amended from time to time,
c) Credit Derivative Contract undertaken in terms of notification No. IDMD.PCD.
No.10/14.03.04/2012-13 dated January 7, 2013, as amended from time to time, and
d) Any other derivative contract as may be specified by the Reserve Bank;
vi) “Reserve Bank” means the Reserve Bank of India constituted under sub-section (1) of section 3 of the
Reserve Bank of India Act, 1934 (2 of 1934), as amended from time to time;
vii) The words and expressions used but not defined in these Regulations shall have the same meanings
respectively as assigned to them in the Act.
3. Prohibition
Save as otherwise provided in these regulations and any other regulations issued under the Act and in force
on the date of commencement of these regulations, no person shall post or collect margin for derivative
contracts and pay or receive interest on such margin without the prior permission of the Reserve Bank.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
4. Permission
Notwithstanding anything contained in any other regulation issued by the Reserve Bank under the Act and
for the time being in force, and subject to directions issued by the Reserve Bank in this regard, authorised
dealers may:
i) Post and collect margin, in India and outside India, on their own account or on behalf of their customers
for a permitted derivative contract entered into with a person resident outside India, in the form and manner
as specified by the Reserve Bank; and
ii) Receive and pay interest on margin posted and collected on their own account or on behalf of their
customers for a permitted derivative contract entered into with a person resident outside India.
DIMPLE BHANDIA, General Manager (Officer-in-Charge)
[ADVT.-III/4/Exty./319/2020-21]
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.