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Sebi permits clearing corps at IFSC to accept cash as trade collateral

Cash and cash equivalents would form at least 50 per cent of the total liquid assets at all times

Press Trust of India  |  New Delhi 

SEBI
Photo: Reuters

regulator Sebi today allowed corporations at international financial services centres (IFSCs) to accept cash and cash equivalents as collateral for trades in all product categories.

Cash and cash equivalents will include major foreign currencies as may be decided by the corporation from time to time, term deposit receipts and issued by located in IFSC.

"corporations in IFSC shall be permitted to accept cash and cash equivalents, Indian securities held with foreign depositories, foreign securities including units of liquid mutual funds and gold, as eligible collateral for trades in all product categories," Sebi said in a circular

However, cash and cash equivalents would form at least 50 per cent of the total liquid assets at all times, it added.

GIFT (Gujarat International Tec-City) has been set up by the as India's first IFSC that brings together world class infrastructure, connectivity, people and technology on a single platform for businesses across the world.

IFSC at GIFT City is probably the first such centre to be launched after the 2008 global financial crisis.

The (Sebi), in March 2015, had issued a detailed set of guidelines for establishing IFSCs as part of its efforts for setting up financial hubs in the country.

First Published: Wed, February 21 2018. 18:06 IST
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