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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues Participation of Standalone Primary Dealers in Non-deliverable Rupee Derivative Markets

22-Sep-2025 | RBI/2025-2026/78 A. P. (DIR Series) Circular No.10

Reserve Bank of India (RBI) has introduced Participation of Standalone Primary Dealers in Non-deliverable Rupee Derivative Markets effective from 22nd September 2025. RBI has referred to the Foreign Exchange Management Regulations, 2000 and updated the Master Direction on Risk Management and Inter-Bank Dealings, 2016, which govern derivative transactions, further, explicitly to include SPDs (Standalone Primary Dealers) as Authorised Dealer Category-III (AD Cat-III) in relevant sections wherever Authorised Dealer Category-I banks and IFSC (International Financial Services Centre) Banking Units are mentioned. Earlier, only Authorised Dealer Category-I (AD Cat-I) banks with an IFSC Banking Unit (IBU) were allowed to trade in non-deliverable derivative contracts (NDDCs) involving the Indian Rupee. Now, SPDs who are authorised as AD Cat-III are also permitted to transact in these Rupee NDDCs. This change applies to transactions with both residents and non-residents. For this circular, the term Authorised Persons includes both AD Cat-I banks and SPDs authorised as AD Cat-III. Please refer to the attached circular for more information.

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