The Reserve Bank of India (RBI) on February 21, 2025, issued the notification regarding the Reserve Bank of India (Forward Contracts in Government Securities) Directions, 2025.
The following has been stated namely: -
• These Directions shall apply to forward contracts in government securities undertaken in the Over-the-Counter (OTC) market in India.
• The following persons shall be eligible to undertake bond forward transactions to the extent permitted under these Directions:
o A resident
o A non-resident who is eligible to invest in Government Securities.
• The following entities shall be eligible to undertake transactions in bond forwards as market-makers:
o A Scheduled Commercial Bank (except a Small Finance Bank, a Payment Bank, a Local Area Bank and a Regional Rural Bank)
o A Standalone Primary Dealer (SPD).
These Directions shall come into force with effect from May 02, 2025.
[Notification No. RBI/2024-25/117]
