Regulatory Alerts2025-07-29
SEBI Circular on Operational Efficiency in Monitoring NRI Position Limits in Exchange Traded Derivatives
The Securities and Exchange Board of India (SEBI) has abolished the mandatory requirement for Non-Resident Indians (NRIs) to notify clearing members and obtain a unique Custodial Participant (CP) Code for trading in exchange traded derivatives. Exchanges and clearing corporations are now directed to monitor NRI position limits using the same client-level limits applied to resident investors, thereby streamlining operational processes. Market intermediaries must implement these changes within 30 days and provide existing NRI clients with an option to exit the CP code regime within 90 days of the circular's issuance.
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