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RBI/2017-18/97
FMRD.DIRD.05/14.03.007/2017-18
November
16, 2017
All market participants
Dear Sir/Madam,
Over-the-Counter Government
Securities Transaction by Foreign Portfolio Investors (FPIs) – Settlement
Period
In terms of RBI circular
FMRD.DIRD.06/14.03.007/2014-15 dated March 20, 2015, Foreign
Portfolio Investors (FPIs) are required to settle transactions in
Government Securities in the Over-the-Counter-(OTC) market on a T+2 basis.
2. As announced in paragraph 13
of the Statement on
Developmental and Regulatory Policies, of the fourth Bi-monthly
Monetary Policy Statement for 2017- 18 dated October 04, 2017, it
has now been decided to permit FPIs to settle OTC secondary market
transactions in Government Securities either on T+1 or on T+2 basis. It may
be ensured that all trades are reported on the trade date itself.
3. All other existing conditions
for settlement of transactions in Government Securities remain unchanged.
4. These directions are issued
under Section 45(W) of the RBI Act, 1934.
5. The above directions shall be
applicable with November 20, 2017.
Yours
faithfully
(T.
Rabi Sankar)
Chief General Manager
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