The Reserve Bank of India (RBI) on March 09, 2021 has issued a notification specifying the following contracts as the qualified contracts under the Bilateral Netting of Qualified Financial Contracts Act, 2020.
• “derivative” as defined under clause (a) of Section 45U of the Reserve Bank of India Act, 1934.
• “repo” and “reverse repo” as defined under clause (c) and (d) respectively of Section 45U of the Reserve Bank of India Act, 1934.
RBI hereby specifies the following entities as qualified financial market participants to deal in qualified financial contracts, namely:
• Entities licensed by RBI to do banking business, but not included in the second schedule to the Reserve Bank of India Act, 1934.
• “Export-Import Bank of India” established under the Export-Import Bank of India Act, 1981.
• “National Bank for Agriculture and Rural Development” established under the National Bank for Agriculture and Rural Development Act, 1981.
• “Small Industries Development Bank of India” established the Small Industries Development Bank of India Act, 1989.
• “National Housing Bank” established under the National Housing Bank Act, 1987.
• “Factor” as defined in Section 2 (i) of the Factoring Regulation Act, 2011.
• “Asset Reconstruction Company” as defined under section 2 (1) (ba) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
[Notification No. FMRD.DIRD. 2/14.03.043/2020-21]
