RBI/2016-17/86
FMRD.DIRD.08/14.03.007/2016-17
October 20, 2016
All SGL/CSGL Account holders
Dear Sir/Madam,
Participation of Foreign Portfolio Investors (FPIs) in Government securities on NDS-OM platform
In terms of RBI circular FMRD.DIRD.06/14.03.007/2014-15 dated March 20, 2015, FPIs are currently permitted to transact in the Over-The-Counter (OTC) market for Government securities with T+2 settlement.
2. As announced in paragraph 36 of the First Bi-monthly Monetary Policy Statement for the year 2016-17 on April 5, 2016, it has been decided to allow FPIs to trade Government securities in the secondary market through the primary members of NDS-OM including the Web-module. The primary members of NDS-OM shall be responsible for settlement of the trades, which will be on T+1 basis. This facility will become available with effect from December 1, 2016.
3. The existing OTC route with T+2 settlement shall continue to be available to FPIs and subject to review.
4. All other terms and conditions prescribed in the circular, ibid, remain the same.
Yours faithfully,
(T. Rabi Sankar)
Chief General Manager
