Participation of Foreign Portfolio Investors (FPIs) in Commodity Derivatives in IFSC
Summary
This circular permits Foreign Portfolio Investors to participate in commodity derivatives contracts traded on stock exchanges within the International Financial Services Centre. The participation is restricted to non-agricultural commodities, with cash settlement based on overseas exchange prices and transactions denominated in foreign currency. The provisions became effective immediately upon issuance under powers conferred by Section 11(1) of the SEBI Act.
Text
FPIs shall be permitted to participate in commodity derivatives contracts traded in stock exchanges in IFSC subject to following conditions
The participation would be limited to the derivatives contracts in non-agricultural commodities only
Contracts would be cash settled on the settlement price determined on overseas exchanges
All the transactions shall be denominated in foreign currency only
The provisions of this circular shall come into effect from the date of this Circular
The Exchanges are advised to take steps to make necessary amendments to the relevant bye-laws, rules and regulations... bring the provisions of this circular to the notice of the members... and disseminate the same on their website
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992
Source: SecMarx — Participation of Foreign Portfolio Investors (FPIs) in Commodity Derivatives in IFSC. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.