Regulation 4 - Permission - Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020.

1 [4. Permission (1) Notwithstanding anything contained in any other regulation issued by the Reserve Bank under the Act and for the time being in force, and subject to directions issued by the Reserve Bank in this regard, authorised dealers may: (i) Post and collect margin, in India and outside India, for a permitted derivative contract entered into with a person resident outside India, and receive and pay interest on such margin. (ii) Post and collect margin, outside India, for a permitted derivative contract entered into with another authorised dealer, provided that at least one of the authorised dealers is a branch of a foreign bank, and receive and pay interest on such margin. (iii) Post and collect margin, in India and outside India, for derivative transactions of their overseas branches and International Financial Services Centre Banking Units, and receive and pay interest on such margin. Provided that posting and collection of such margin and receipt and payment of interest on the margin may be undertaken by the Authorised Dealer or by its overseas branches or its overseas head office (including its overseas branches), subject to terms and conditions specified by the Reserve Bank. (2) Notwithstanding anything contained in any other regulation issued by the Reserve Bank under the Act and for the time being in force, and subject to directions issued by the Reserve Bank in this regard, authorised dealers may post and collect margin, in India and outside India, on behalf of their customers for a permitted derivative contract entered into with a person resident outside India and receive and pay interest on such margin. ] DIMPLE BHANDIA, General Manager (Officer-in-Charge) [ADVT.-III/4/Exty./319/2020-21] **************** NOTES:- 1. Substituted vide Notification No. FEMA.399(1)/2024-RB dated 30-04-2024 before it was read as, 4. Permission Notwithstanding anything contained in any other regulation issued by the Reserve Bank under the Act and for the time being in force, and subject to directions issued by the Reserve Bank in this regard, authorised dealers may: i) Post and collect margin, in India and outside India, on their own account or on behalf of their customers for a permitted derivative contract entered into with a person resident outside India, in the form and manner as specified by the Reserve Bank; and ii) Receive and pay interest on margin posted and collected on their own account or on behalf of their customers for a permitted derivative contract entered into with a person resident outside India.