FII CAN PLEDGE FOREIGN SECURITIES

In a move to further deregulate the Indian equity derivatives market, the Reserve Bank of India (RBI) has broadened the number of instruments for maintenance of collateral by foreign institutional investors undertaking derivatives transactions. RBI has decided in consultation with the Government of India and Securities and Exchange Board of India (SEBI) to permit SEBI approved clearing corporations of stock exchanges and their clearing members to open and maintain demat accounts with foreign depositories and to acquire, hold, pledge and transfer the foreign sovereign securities, offered as collateral by FIIs.