PART III
AMENDMENT TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956
Amendment of Act 42 of 1956.
148. In the Securities Contracts (Regulation) Act, 1956, in section 18A, after clause (b), the following clause shall be inserted, namely:––
‘(ba) regulated by the International Financial Services Centres Authority established under section 4 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), in an International Financial Services Centre and issued by a Foreign Portfolio Investor.
Explanation.––For the purposes of this clause, the expression “Foreign Portfolio Investor” shall have the meaning assigned to it in clause (u) of rule 2 of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 made under section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999);’.
Notes on Clauses:
Clause 148 of the Bill seeks to amend section 18A of the Securities Contracts (Regulation) Act, 1956 relating to contracts in derivatives.
It is proposed to insert a new clause (ba) in the said section so as to provide that the contract in derivatives issued by a Foreign Portfolio Investor in a International Financial Service Centre regulated by the International Financial Service Centres Authority shall also be legal and valid contracts and to define the expression “Foreign Portfolio Investor”.