Margin for Derivative Contracts

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..... e A. P. (DIR Series) Circular No.10 dated February 15, 2021 on Margin for Derivative Contracts were issued to allow posting and collection of margin for permitted derivative contracts between a person resident in India and a person resident outside India. The instructions have been reviewed based on market feedback and the Reserve Bank of India (Margin for Derivative Contracts) Directions, 2024 are being issued herewith. 3. These Directions shall come into force with immediate effect and shall supersede the A. P. (DIR Series) Circular No. 10 dated February 15, 2021. 4. For the purpose of these Directions, Authorised Dealers shall mean Authorised Dealer Category-I (AD Cat-I) banks and Authorised Dealer Category III Standalone Primary Dealers .....

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..... ph 2(a)(iii) of the Master Direction Reserve Bank of India (Certificate of Deposit) Directions, 2021 dated June 04, 2021, as amended from time to time. (iii) Commercial Paper shall have the meaning assigned in paragraph 2(a)(iv) of the Master Direction - Reserve Bank of India (Commercial Paper and Non-Convertible Debentures of original or initial maturity upto one year) Directions, 2024 dated January 03, 2024, as amended from time to time. 2.2 Words and expressions used, but not defined in these Directions, shall have the same meaning as assigned to them in the Act and Rules / Regulations issued thereunder. 3. Authorised Dealers may: (i) Post and collect margin, in India and outside India, for a permitted derivative contract entered into wi .....

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..... y; and (ii) Debt securities issued by foreign sovereigns with a credit rating of AA- and above issued by S P Global Ratings / Fitch Ratings or Aa3 and above issued by Moody s Investors Service. If different ratings are accorded by two or more credit rating agencies, then the lowest rating shall be reckoned. 7. In case of Authorised Dealers choosing to comply with the margin requirements of a foreign jurisdiction for Non-Centrally Cleared Derivative (NCCD) transactions with a person resident outside India or for NCCD transactions between two Authorised Dealers, at least one of which is a branch of a foreign bank, in terms of Para 11 of the Master Direction Reserve Bank of India (Margining for Non-Centrally Cleared OTC Derivatives) Directions .....

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