RBI notifies directions on ‘Margin for Derivative Contracts’ after review based on market feedbacks
Editorial Note : Earlier, the RBI vide circular dated 15.02.2021 notified ‘Margin for Derivative Contracts’. It was issued to allow posting and collection of margin for permitted derivative contracts between a person resident in India and a person resident outside India. Now, based on the market feedbacks received, the central bank has notified RBI (Margin for Derivative Contracts) Directions, 2024. These directions shall apply to AD Cat-I banks & AD Cat-III Standalone Primary Dealers, from immediate effect.