International Financial Services Centers Authority defines Qualified Financial Contracts

The International Financial Services Centers Authority through notification dated the 2nd February, 2021 has defined the Qualified Financial Contracts and enlisted the agreements that fall under the definition. “Qualified financial contract” shall mean any privately negotiated bilateral financial contract executed outside a stock exchange, including any terms and conditions incorporated by reference in any such financial contract, pursuant to which payment or delivery obligations that have a market price are due to be performed at a certain time or within a certain period of time and includes

• Currency, cross-currency or interest rate swap;
• Basis swap;
• Spot, forward or other foreign exchange transaction;
• Cap, collar or floor transaction;
• Commodity swap;
• Forward rate agreement;
• Currency or interest rate option;
• Spot, forward or other securities or commodities transaction;
• A securities contract, including a margin loan and an agreement to buy, sell, borrow or lend securities, such as a securities repurchase or reverse repurchase agreement, a securities lending agreement or a securities buy/sell-back agreement, including any such contract or agreement relating to mortgage loans, interests in mortgage loans or mortgage-related securities, a money market instrument;
• A commodities contract, including an agreement to buy, sell, borrow or lend commodities;
• Commodities lending agreement;
• Commodities buy/sell-back agreement;
• A collateral arrangement;
• An agreement to clear or settle securities transactions or to act as a depository for securities;