FII Position Limits in Exchange Traded Interest Rate Futures (IRF)

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..... Sub: FII Position Limits in Exchange Traded Interest Rate Futures (IRF) 1. SEBI in consultation with RBI, vide circular CIR/MRD/DRMNP/35/2013 dated December 5, 2013 prescribed the framework for Stock Exchanges to launch cash settled Interest Rate Futures on 10-year G-sec. 2. In the said circular, the following position limits were prescribed for FIIs: The gross open positions of the .....

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..... nd corporate bonds by directing depositories to disseminate information regarding the total FII investment values in Government and corporate bonds. It has been decided in consultation with RBI that this monitoring mechanism shall also incorporate monitoring of gross long positions of FIIs in IRF as mentioned in Paragraph '2' above. The mechanism shall be as follows: a. Stock exchanges .....

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..... reign Exchange Department), SEBI and Stock Exchanges. d. Once 90% of limit is utilized, NSDL and CDSL shall inform RBI, SEBI and Stock Exchanges about the same. Stock Exchanges shall notify the same to the market and thereafter FIIs shall not further increase their long position in IRF till the time the overall long position of FIIs in cash and IRF comes below 85% of existing permissible limit. .....

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