Separate limit of Interest Rate Futures (IRFs) for Foreign Portfolio Investors (FPIs)


March 1, 2018

All market participants


Separate limit of Interest Rate Futures (IRFs) for Foreign Portfolio Investors (FPIs)

Please refer to Paragraph 8 of the statement on Developmental and Regulatory Policies, issued as part of the third Bi-monthly Monetary Policy Statement for 2017- 18 dated August 02, 2017, wherein a separate limit of Interest Rate Futures for Foreign Portfolio Investors was proposed.

2. Currently, the FPI limit for Government Securities (G-secs) is fungible between investments in G-secs and investment in IRF. FPI long positions in IRF are not allowed on G-sec limit utilisation reaching 90%. To facilitate further market development and to ensure that access of FPIs to IRFs remains uninterrupted, it has been decided to allocate FPIs a separate limit of ? 5,000 crore for long position in IRFs. Accordingly, para 4.2 of the RBI Directions No. IDMD.PCD.07/ED(RG)-2013 dated December 05, 2013 is amended to read as follows:

“Foreign Portfolio Investors, registered with Securities and Exchange Board of India, are permitted to purchase or sell Interest Rate Futures subject to the following conditions:

(i) the aggregate long position of all FPIs, each of whom has a net long position in any IRF instrument, shall not exceed ? 5000 crore, aggregated across all IRF instruments,


(ii) the total gross short (sold) position of any Foreign Portfolio Investor shall not exceed its consolidated long position in Government securities and Interest Rate Futures, at any point in time”.

3. The limits prescribed for investment by FPIs in G-secs (currently ? 3,01,500 crore) will be exclusively available for investment in G-secs. All other terms and conditions of the extant IRF directions will remain unchanged.

4. The detailed operational guidelines in this regard will be issued separately by SEBI.

5. The above directions are issued under section 45 (W) of the RBI Act, 1934.

Yours faithfully

(T. Rabi Sankar)
Chief General Manager


Seair Exim offers an Import-Export data demo.

We do not mediate buying, selling of products or services.

Seair is proud to have a loyal customer base from big brands.

We have successfully served many reputable clients for Import-Export Data Information Services. Here are some of our clients:

Get a free Import-Export data demonstrative report on desired products.

We don’t offer any assistance over buying or selling any products.

Thank You

Big thanks to showing your interest in SEAIR Exim Solutions. We’ve currently received your request for data information. We will return on the same query in a short span of time.

Copyright © 2009 - 2023 All Rights Reserved.