9911796707
TMI BlogScheme of FII Trading in all Exchange Traded Derivative ContractsX X X X Extracts X X X X X X X X Extracts X X X X ..... verall open interest of the FII would not exceed 100% of market value of the concerned FII s total investment. The SEBI Board vide meeting, dated December 28, 2001 has permitted FIIs to trade in all exchange traded derivative contracts and laid down the position limits for the trading of FIIs and their sub-accounts. RBI vide Circular ECO.CO.FII/515/11.01.01/(16) 2000-01, dated February 4, 2002 permitted FIIs to trade in all the exchange traded derivative contracts subject to the position limits prescribed hereunder. The FIIs shall be under obligation to adhere to the position limits prescribed for them and their sub-accounts. The FIIs shall also comply with the procedure for trading, settlement and reporting as prescribed by the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in all derivative contracts on an underlying stock at an exchange. The Derivative Segment of the Exchanges and their Clearing House/Clearing Corporation would monitor the FII position limits at the end of each trading day. For this purpose, the Derivative Segment of the Exchanges and their Clearing House/Clearing Corporation would implement the following procedure for the monitoring of the FII and the sub-account s position limits : 1. The FII would be required to notify the names of the Clearing Member/s and Custodian through whom it would clear its derivative trades to exchanges and their Clearing House/Clearing Corporation. 2. A unique code would be assigned by the exchanges and/or the Clearing House/Cleari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nter the unique sub-account code before executing a trade on behalf of the sub-account. 8. The sub-account position limits would be monitored by the FII itself, on the same lines as the trading member monitors the position limits of its client/customer. The FIIs would report any breach on position limits by the sub-account, to the derivative segment of the exchange and their Clearing House/Clearing Corporation and the FII/Custodian/Clearing Member/s would ensure that the sub-account does not take any fresh positions in any derivative contracts in that underlying. However the sub-account would be permitted to execute offsetting transactions so as to reduce its open position. 9. The exchanges may assign unique su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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