The Securities and Exchange Board of India (SEBI), on December 10, 2024, issued a Consultation paper on Draft Circular on Operational Efficiency in Monitoring of NonResident Indians (NRIs) Position Limits in Exchange Traded Derivatives Contracts - Ease of Doing Investment.
To enhance operational efficiency and ease of investment for NRIs by removing procedural hurdles in trading derivatives.
Currently, NRIs require a Custodial Participant (CP) Code and can only trade through one Clearing Member (CM), necessitating a No Objection Certificate (NOC) for changes. This creates inefficiencies. The introduction of PAN as a unique identifier enables monitoring of NRI position limits, eliminating the need for CP Codes and allowing NRIs to trade through multiple CMs.
Replacing CP Codes with PAN for monitoring NRI position limits.
Allowing NRIs to engage with multiple CMs without NOC requirements.
Stakeholders are invited to provide feedback on the draft circular by December 31, 2024, through SEBI's portal or via email.
