Regulation 2 - Definitions - Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020.

2. Definitions In these Regulations, unless the context requires otherwise: i) Act means the Foreign Exchange Management Act, 1999 (42 of 1999); ii) Authorised dealer means a person authorised as authorised dealer under sub-section (1) of section 10 of the Act; iii) Derivative shall have the same meaning as assigned to it in sub-regulation (da) of regulation 2 of the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000 , as amended from time to time; iv) Margin means the collateral that the parties to a derivative contract post with or collect from each other (whether directly or through a third party) to cover some or all of the credit risk that the provider of the collateral poses for the receiver of the collateral; v) Permitted derivative contract means: a) Foreign Exchange Derivative Contract undertaken in terms of the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 and Master Direction Risk Management and Inter-bank Dealings, as amended from time to time, b) Interest Rate Derivative Contract undertaken in terms of the Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019 (Notification no. FMRD.DIRD.20/2019 dated June 26, 2019), as amended from time to time, 1 [ c) Credit Derivative Contract undertaken in terms of the Master Direction Reserve Bank of India (Credit Derivatives) Directions, 2022 (Notification no. FMRD.DIRD.11/14.03.004/2021-22 dated February 10, 2022), as amended from time to time, and ] d) Any other derivative contract as may be specified by the Reserve Bank; vi) Reserve Bank means the Reserve Bank of India constituted under sub-section (1) of section 3 of the Reserve Bank of India Act, 1934 (2 of 1934), as amended from time to time; vii) The words and expressions used but not defined in these Regulations shall have the same meanings respectively as assigned to them in the Act. **************** NOTES:- 1. Substituted vide Notification No. FEMA.399(1)/2024-RB dated 30-04-2024 before it was read as, c) Credit Derivative Contract undertaken in terms of notification No. IDMD.PCD. No.10/14.03.04/2012-13 dated January 7, 2013, as amended from time to time, and