RBI through circular dated June 4, 2021 has issued clarification regarding Payment of margins for transactions in Government Securities by Foreign Portfolio Investors. All transactions in government securities concluded outside the recognized stock exchanges are settled on a guaranteed basis by the Clearing Corporation of India Ltd. RBI has allowed banks in India having an Authorized Dealer Category-1 license under FEMA, 1999 to lend to FPIs in accordance with their credit risk management frameworks for the purpose of placing margins with CCIL in respect of settlement of transactions involving Government Securities (including Treasury Bills and State Development Loans) by the FPIs.
