**Summary:**
This Reserve Bank of India (RBI) circular, reference number RBI/2021-22/50 FMRD.FMID.No.0514.01.006/2021-22, dated June 7, 2021, addresses the reporting of Over-the-Counter (OTC) transactions in Government securities by Foreign Portfolio Investors (FPIs). It provides operational flexibility for reporting such transactions, which include State Development Loans and Treasury Bills, to the Negotiated Dealing System-Order Matching (NDS-OM) platform.
Key provisions of the circular are:
* FPIs' custodian banks are required to report transactions to the NDS-OM platform within three hours after the close of trading hours for the Government securities market.
* Clearcorp Dealing Systems India Ltd. (CDSL) will disseminate information about trades undertaken by domestic counterparties with FPIs after one leg of the trade is reported on the NDS-OM platform by the domestic counterparty, with a suitable qualifier indicating that the trade is awaiting counterparty confirmation.
* Domestic market participants, including domestic counterparties to transactions with FPIs, are required to continue reporting transactions to the NDS-OM platform as per existing practices.
CDSL will issue necessary operational guidance. The directions are issued under Section 45W of the Reserve Bank of India Act, 1934 and will be effective from June 14, 2021.
For further information, contact the Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001, India. Phone: +91 22 2260 1000, Fax: +91 22 2270 2290, Email: cgmfmrdrbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, which issued the notification.
Foreign Portfolio Investors: Refers to investors investing in Government securities. The notification provides operational flexibility for reporting transactions undertaken by them.
Government securities: Debt instruments issued by the government. The notification concerns transactions in these securities.
State Development Loans: Debt instruments issued by state governments. The notification includes transactions in these securities.
Treasury Bills: Short-term debt instruments issued by the government. The notification includes transactions in these securities.
Negotiated Dealing System Order Matching: An electronic trading platform used for trading in government securities.
Clearcorp Dealing Systems India Ltd: An entity that will disseminate information about trades undertaken by domestic counterparties with FPIs.
Mumbai, Maharashtra: The city and state where the Financial Markets Regulation Department, Central Office Building is located.
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2021-22/50
FMRD.FMID.No.05/14.01.006/2021-22 June 7, 2021
To
All participants in Government securities market
Madam/Sir,
Transactions in Government securities by Foreign Portfolio Investors: Reporting
Over the counter (OTC) transactions in Government securities (including State
Development Loans and Treasury Bills) undertaken by market participants other than on
the Negotiated Dealing System – Order Matching (NDS-OM) platform are required to be
reported to the ‘NDS-OM’ platform for settlement.
2. Based on the feedback received, it has been decided to provide operational flexibility
for reporting of such transactions undertaken by the Foreign Portfolio Investors (FPIs) in
Government securities, as under.
a. FPIs/custodian banks shall report their transactions to the NDS-OM platform
within three hours after the close of trading hours for the Government securities
market.
b. Information about trades undertaken by domestic counterparties with FPIs shall
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.
c. Domestic market participants, including domestic counterparties to transactions
with FPIs, shall continue to report transactions to the NDS-OM platform as per
extant practice.
िव�ीय बाज़ार िविनयमन िवभाग,क��ीय कायार्लय भवन, नौव� मंिजल, शहीद भगत �सह माग,र् फोटर्, मुंबई–400001.भारत
फोन: (91-22) 2260 1000,फैक्स: (91-22) 22702290 ई-मेल: cgmfmrd@rbi.org.in
Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. India
Tel: (91-22) 2260 1000, Fax: (91-22) 22702290 e-mail- cgmfmrd@rbi.org.in
िहन्दी आसान ह,ै इसका �योग बढ़ाइए3. Necessary operational guidance in this regard shall be issued by CDSL.
4. These Directions are issued under the powers vested in the Reserve Bank of India
under Section 45W of the Reserve Bank of India Act, 1934 and are without prejudice
to permissions/ approvals, if any, required under any other law.
5. The Directions shall come into effect from June 14, 2021
(Dimple Bhandia)
Chief General Manager