Moreover, their position limits will be followed at customer level, similar to domestic investors.
The decision, based on the recommendation received from the Standards Forum of Brokers, is aimed at facilitating the convenience of investments to NRIs for trade in trading in ruication contracts and operational efficiency.
“It has been decided to abolish the mandatory requirement of NRIs to prepare the names of the Clearing Member and the subsequent allocation of CP code to the NRIs by the stock market,” Sebi said in his circular.
For NRIS-trade in with exchange-handy derivative contracts without CP code, the Exchange/Clearing Corporation would follow the NRI position limits in the way that is comparable to the position limits on the customer level monitoring, it added.
Position limits for NRIs would be the same as the position limits at the customer level that has been specified by Sebi from time to time. NRIs are currently obliged to inform trade fairs about their clearing member and obtain a CP code, which is used by fairs to keep their positions in the derivatives segment. The supervisor has ordered stock fairs and cleans up companies to implement the revised standards within 30 days. They have also been asked to allow existing NRI clients for the CP code framework by submitting an E -mail request within 90 days.
Furthermore, members must offer an option to NRIs who initially opt for CP code, but later decide to leave, based on an e -mail request.
#Sebi #relaxes #NRI #trading #standards #Derivaten #market