Attention
of Authorized Dealers is invited to the instructions contained
in Paragraph-9 (a) (i) Chapter XX of the Foreign Exchange
Manual, 2002, regarding trading of quoted shares by non-residents
through Special Convertible Rupee Account (SCRA).
It
has now been decided to allow non-residents to trade in
shares in Futures Market through Special Convertible Rupee
Account. Accordingly, following instructions are being
added in the above Paragraph after the words “account-
holders” appearing in the last line as under:
“Non-residents
are allowed to trade in shares in Futures Market through
SCRA, subject to the following procedure:
(i)
A separate sub-account under SCRA shall be opened by foreign
investors through which an investor will route receipts/payments,
initial margin, mark-to-market settlement, transaction
charges, commission, fees etc.
(ii)
Margins relating to Futures Contracts may also be routed
through this account. However, while allowing refund of
the margin through SCRA to a non-resident, the Authorized
Dealer should ensure that the broker has quoted the date
and instrument number under which the margin was received
by them.
(iii)
Authorized Dealers shall report information on market
value of foreign investments through future trading in
their weekly returns to the Statistics Department on the
revised proforma as enclosed. The daily statement showing
inflow/outflow and opening/closing balances in the SCRA
shall however, continue to be reported to the Statistics
Department on the prescribed proforma as advised vide
EPD Circular Letter No.05/EPP.11(579)-2005 dated March
11, 2005.”
Encl:
As above