Reserve Bank of India (RBI) has amended its notification dated January 8, 2010, regarding contracts for the sale or purchase of government securities, gold-related securities, and money market instruments. This amendment, issued under Section 16 of the Securities Contracts (Regulation) Act, 1956, refines the definition of permissible contracts. Under the new provisions, such contracts are prohibited except for spot delivery contracts, those traded on recognized stock exchanges under applicable regulations, or those explicitly permitted by the RBI. The amendment takes effect upon its publication in the Official Gazette.
RESERVE BANK OF INDIA
(Financial Markets Regulation Department)
(CENTRAL OFFICE)
NOTIFICATION
Mumbai, the 7th February, 2025
F. No. FMRD.DIRD.14/14.03.042/2024-25.—In exercise of the powers conferred on the Reserve Bank of India under Section 16 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) vide Government of India Notification No. S.O. 183(E) dated 1st March, 2000, the Reserve Bank of India hereby amends notification number S.O. 2192(E) dated 8th January, 2010 (‘the notification’) as under:
In clause (A), for sub-clause (1), the following shall be substituted , namely:-
“(1) contract for the sale or purchase of Government Securities, gold related securities and money market securities, other than:
a. spot delivery contracts,
b. such other contracts traded on a recognised stock exchange as is permissible under the said Act, rules and bye-laws of such stock exchange, or
c. any other contract specifically permitted in this regard by the Reserve Bank of India, from time to time.”
The above amendment shall come into force on the date of its publication in the Official Gazette.
DIMPLE BHANDIA, Chief General Manager
[ADVT.-III/4/Exty./973/2024-25]
Note:- The notification dated 8th January, 2010, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O. 2192(E).
