Direct Market Access (DMA) to SEBI registered Foreign Portfolio Investors (FPIs) for participating in Exchange Traded Commodity Derivatives (ETCDs)
Summary
This circular permits Recognized Stock Exchanges to extend Direct Market Access (DMA) facilities to SEBI-registered Foreign Portfolio Investors for participating in Exchange Traded Commodity Derivatives. The permission is subject to conditions including adherence to existing DMA frameworks and the specific regulations governing FPI participation in ETCDs. Stock exchanges are required to amend their bye-laws, notify members, and report implementation status to SEBI.
Text
it has been decided to allow stock exchanges to extend DMA facility to FPIs for participation in ETCDs subject to the following conditions:
Stock exchanges/brokers shall adhere to the provisions stipulated in SEBI Circulars mentioned at Paragraph 2 above which include procedure for application for DMA, operational specifications, Client authorization and broker-client agreement, risk management, etc.
The provisions of Circular No. SEBI/HO/MRD/MRD-RAC-1/P/CIR/2022/131 dated September 29, 2022 allowing FPIs to participate in ETCDs shall remain applicable.
The provisions of this circular shall come into immediate effect.
Take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of this circular,
Bring the provisions of this circular to the notice of the members of the stock exchange and also disseminate the same on their website.
Communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Report.
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Direct Market Access (DMA) to SEBI registered Foreign Portfolio Investors (FPIs) for participating in Exchange Traded Commodity Derivatives (ETCDs). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.