Clarification on participation of Eligible Foreign Investors (EFIs) in Commodity Derivatives in IFSC
Summary
SEBI clarifies that Eligible Foreign Investors may participate in commodity derivatives contracts traded in IFSC stock exchanges. This participation is restricted to non-agricultural commodities, cash settlement based on overseas exchange prices, and foreign currency denomination. Stock Exchanges are instructed to amend their bye-laws and disseminate these provisions to members.
Text
EFIs may participate in commodity derivatives contracts traded in stock exchanges in IFSC subject to the 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
take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same
bring the provisions of this circular to the notice of the members of the Exchange and also to disseminate the same on their website
Source: SecMarx — Clarification on participation of Eligible Foreign Investors (EFIs) in Commodity Derivatives in IFSC. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.