The draft outlines new participation guidelines, product offerings, and reporting obligations. Both residents and non-residents are eligible to participate, with specific conditions for non-residents, including a cap on their aggregate long position in Interest Rate Futures (IRFs) at ₹5,000 crore. Market-makers, including Scheduled Banks and Primary Dealers, are categorized, and a user classification framework distinguishes between retail and non-retail users, influencing the types of IRD products they can access. For instance, retail users are generally restricted to buying certain products for hedging purposes.
— A notable change is the requirement for market-makers to report global IRD transactions undertaken by their offshore related parties to the Trade Repository of Clearing Corporation of India Ltd. (CCIL), aiming for comprehensive oversight. Additionally, non-resident transactions for purposes other than hedging will be subject to an overall Price Value of a Basis Point (PVBP) limit of ₹1,000 crore, monitored by CCIL. The comments/ suggestions from stakeholders are invited.
(Link: Draft RBI Master Directions Dated 16/06/2025, Press Release)