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RBI allows FPIs to transact in securities directly

From : Arjun Chennam at 06:56 AM - Dec 28, 2016 ( )

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Reserve Bank has eased norms for foreign portfolio investors to transact in securities other than shares by allowing them to trade directly in such instruments. "With a view to providing flexibility in regard to the manner in which non-convertible debentures/bonds issued by Indian companies can be acquired by FPIs, it has now been decided to allow them to transact in such instruments either directly or in any manner as per the prevalent/approved market practice," the RBI said in a notification. Sebi registered Foreign Institutional Investors (FIIs), Qualified Foreign Investors (QFIs), registered Foreign Portfolio Investors (FPIs) and long-term investors are allowed to purchase securities on repatriation basis, and subject to such terms and conditions as may be specified by SEBI and the Reserve Bank from time to time, it said.





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From : Arjun Chennam at 07:01 AM - Dec 28, 2016 ( )

Sebi eases trading norms for equity derivatives contract The decision has been taken in consultation with Sebi's Secondary Market Advisory Committee. | 1 Comments With an aim to ease trading requirements, markets regulator Sebi today relaxed the combined futures and options position limit of stock brokers, FPIs and mutual funds in equity derivatives to 20 percent of the applicable Market Wide Position Limit. The decision has been taken in consultation with Sebi's Secondary Market Advisory Committee. Currently, stocks having market-wise position limit of Rs 500 crore or more, the combined F&O position limit is 20 percent of the MWPL or Rs 300 crore, whichever is lower and within which stock futures position cannot exceed 10 percent of applicable MWPL or Rs 150 crores, whichever is lower. In case of stocks having market-wise position limit less than Rs 500 crore, the combined futures and options position limit is 20 percent of the MWPL and futures position cannot exceed 20 percent of the MWPL or Rs 50 crore which ever is lower. Market Wide Position Limit (MWPL) is one of the key parameters in analysis of stocks that trade in the derivative segment. Now, Sebi has removed this clauses in order to ease trading requirements of stock brokers/Foreign Portfolio Investors (FPIs) Category I and II, mutual funds in equity derivatives segment. "The combined futures and options position limit shall be 20 percent of the applicable Market Wide Position Limit" for such categories, Sebi said in a circular.


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