SEBI (Securities and Exchange Board of India) has introduced risk management framework for Foreign Portfolio Investors (FPIs) pertaining to various aspects, including margin requirements.
The FPI regime bring together all foreign investor classes such as Foreign Institutional Investors (FIIs), their sub-accounts and Qualified Foreign Investors (QFIs).
All trades undertaken by FPIs in the cash market would be margined on a T+1 basis --settlement of trades with all the required payments one day after the execution of the trade order.
However, the trades of FPIs who are Corporate bodies, Individuals or Family offices shall be margined on an upfront basis as per the extant margining framework for the non-institutional trades.
"The trades of FPIs in Category I, II and III shall be margined on a T+1 basis," the SEBI said in a circular on Thursday.
With regard to equity derivatives segment and Interest Rate Futures, Sebi said Category I and II FPIs would have position limits "as presently available to FIIs."
"Category III FPIs shall have position limits as applicable to the clients," Sebi noted.
The new FPI regime will be effective from June 1.
Category I & II FPIs shall have position limits as presently available to FIIs. Category III FPIs shall have position limits as applicable to the clients.
The FPI regime bring together all foreign investor classes such as Foreign Institutional Investors (FIIs), their sub-accounts and Qualified Foreign Investors (QFIs).
All trades undertaken by FPIs in the cash market would be margined on a T+1 basis --settlement of trades with all the required payments one day after the execution of the trade order.
However, the trades of FPIs who are Corporate bodies, Individuals or Family offices shall be margined on an upfront basis as per the extant margining framework for the non-institutional trades.
"The trades of FPIs in Category I, II and III shall be margined on a T+1 basis," the SEBI said in a circular on Thursday.
With regard to equity derivatives segment and Interest Rate Futures, Sebi said Category I and II FPIs would have position limits "as presently available to FIIs."
"Category III FPIs shall have position limits as applicable to the clients," Sebi noted.
The new FPI regime will be effective from June 1.
Category I & II FPIs shall have position limits as presently available to FIIs. Category III FPIs shall have position limits as applicable to the clients.
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