Operational Efficiency in Monitoring of Non-Resident Indians (NRI) Position Limits in Exchange Traded Derivatives Contracts - Ease of Doing Investment
Summary
SEBI has eliminated the mandatory requirement for Non-Resident Indians (NRIs) to notify Clearing Members and obtain a Custodial Participant (CP) Code for trading in exchange traded derivatives. Consequently, Stock Exchanges and Clearing Corporations must monitor NRI position limits using the same methodology applied to standard client-level limits. The directive mandates operational changes by exchanges and clearing corporations within 30 days and allows existing NRI clients to opt out of the CP code system within 90 days.
Text
SEBI specified operational modalities requiring NRIs to notify Clearing Member names and receive a unique CP Code for monitoring position limits.
The mandatory requirement for NRIs to notify Clearing Members and assign a CP Code is done away with to ease investment.
Exchanges and Clearing Corporations shall monitor NRI position limits similar to client level position limits, which remain the same as specified by SEBI.
Stock Exchanges and Clearing Corporations are directed to bring circular provisions to the notice of members and disseminate them on websites.
Entities must make necessary amendments to Bye-laws, Rules, Regulations, Circulars, SOPs, and FAQs for implementation.
Entities must evolve guidelines for changing operational processes and issue them within 30 days from the date of issuance.
Members must advise providing an option to exit CP code via email request within 90 days from issuance.
Members must make operational changes to allow NRI clients who initially opted for CP code to later exit via email request.
Circular issued under Section 11(1) of SEBI Act, 1992, Regulation 30 of SEBI (Stock Brokers) Regulations, 1992, and Regulation 51 of SCRR Regulations, 2018.
Source: SecMarx — Operational Efficiency in Monitoring of Non-Resident Indians (NRI) Position Limits in Exchange Traded Derivatives Contracts - Ease of Doing Investment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.