Regulatory Alerts2026-04-24
Added · Updated
Framework for net settlement of funds for transactions done by Foreign Portfolio Investors (FPIs) in cash market
Foreign Portfolio Investors (FPIs) are permitted to net settle funds for outright purchase or sale transactions in the cash market, replacing the previous requirement for gross settlement of all transactions. Transactions involving both purchases and sales of the same security within a single settlement cycle remain subject to gross settlement, and securities settlement between FPIs and custodians continues on a gross basis. Custodians and Designated Depository Participants must formulate implementation standards, with all affected entities required to update their systems by December 31, 2026.
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