HomeMarket NewsSEBI mulls simplifying NRI trading in exchange-traded derivatives
Currently, NRIs trading in derivatives are required to obtain a Custodial Participant (CP) Code through a Clearing Member (CM).
By PTI December 11, 2024, 12: 34: 08 AM IST (Updated)
To simplify trading for Non-Resident Indians (NRIs) in exchange-traded derivatives and improve efficiency, Sebi on Tuesday proposed using PAN to monitor position limits, removing the need to notify Clearing Members or obtain CP Codes.
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Currently, NRIs trading in derivatives are required to obtain a Custodial Participant (CP) Code through a Clearing Member (CM). They can only trade through one CM at a time, and switching requires a No Objection Certificate (NOC). This process creates inefficiencies.
With PAN now used as a unique identifier in the securities market, it can replace the CP Code for monitoring NRI position limits.
In its consultation paper, Sebi has proposed removing the requirement for CP Codes and the need to stick to a single CM.
“In order to bring ease of investment for NRIs to trade in derivatives and simplify procedure of monitoring NRI position limits, it is proposed to issu