RESERVE BANK OF INDIA (RBI)

The Reserve Bank of India (hereinafter referred to as “RBI”) had earlier issued a circular, in terms of which FIIs may offer such securities as permitted by the Reserve Bank from time to time as collateral to the recognized Stock Exchanges in India for their transactions in exchange traded derivative contracts.

RBI has now clarified vide circular no: A.P.(DIR series) Circualr no.90, dated 14^th March, 2013, in consultation with the Central Government and Securities Exchange Board of India (SEBI) that FII’s be permitted to use, in addition to already permitted collaterals, their investments in corporate bonds as collateral in the cash segment and government securities and corporate bonds as collaterals in the F & O segment. The guidelines for the same will be issued by SEBI separately.

The Reserve Bank of India (hereinafter referred to as “RBI”) has issued a circular vide AP (DIR series) Circular no. 87, dated 05^th March, 2013 wherein is has notified that, the corporates which are under investigation by any law enforcing agencies like the Directorate of Enforcement (DoE), etc. and which were not allowed to access ECB under the Automatic route will now be permitted to avail ECB’s in automatic route notwithstanding the pending appeals adjudications etc.. Earlier request by such corporates for ECB were examined by the Reserve Bank under the approval route.

Further it has adviced the Authorised Dealers, while approving such proposals to intimate the concerned agencies by endorsing the copy of the approval letter.