Legal UpdatesRBI

FPIs can settle OTC secondary market transaction either on T+1 or on T+2 basis

RBI updates

On 16 November 2017, RBI permits Foreign Portfolio Investors (‘FPIs’) to settle Over-the-Counter (‘OTC’) secondary market transactions in Government Securities either on T+1 or on T+2 basis. RBI directs that all trades should be reported on the trade date itself. These directions are applicable from November 20, 2017 and are issued under Section 45(W) of the RBI Act, 1934.

RBI has given the above permission in reference to the circular issued on March 20, 2015 (FMRD.DIRD.06/14.03.007/2014-15) which directed that FPIs were required to settle transactions in Government Securities in the OTC market on a T+2 basis.

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