CIRCULAR
SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/109 July 29, 2025
To,
All Recognized Stock Exchanges
All Clearing Corporations
Madam / Sir,
Sub: Operational Efficiency in Monitoring of Non-Resident Indians (NRI)
Position Limits in Exchange Traded Derivatives Contracts - Ease of Doing
Investment
1. SEBI, vide Para II of Circular no. SEBI/DNPD/Cir-17/2003/10/29 dated October 29,
2003 (hereinafter mentioned as ‘circular’), inter alia, specified the operational
modalities of monitoring of NRI position limits which required NRIs to notify the
names of the Clearing Member/s for clearing derivative trades to the Exchange and
assignment of a unique client code i.e. Custodial Participant (CP) Code to the NRI
by the Exchange. The Exchange, in turn, would use this information to monitor the
position limits of such NRI clients.
2. As a step towards ease of doing investment and convenience to NRIs for trading
in exchange traded derivatives contracts, to bring in operational efficiency and in
line with the recommendation received from Brokers’ Industry Standards Forum, it
has been decided to do away with the mandatory requirement of NRIs having to
notify the names of the Clearing Member/s and subsequent assignment of CP
Code to the NRIs by the Exchange. Accordingly, for NRIs trading in exchange
traded derivative contracts without CP code, the Exchange/Clearing Corporation
shall monitor the NRI position limits in the manner similar to the client level position
limits monitored by them. Position limits for NRIs shall be same as the client level
position limits specified by SEBI from time to time.
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3. The Stock Exchanges/Clearing Corporations are directed to:
3.1. bring the provisions of this circular to the notice of their members and also
disseminate the same on their websites;
3.2. make necessary amendments to the relevant Bye-laws, Rules, Regulations,
Circulars, SOPs and FAQs for the implementation of the above decision;
3.3. evolve the necessary guidelines for changing the current operational
processes and issue the same on or before 30 days from the date of
issuance of this circular.
3.4. advise their members to provide an option to existing NRI clients to exit from
CP code on submission of request through email communication within 90
days from issuance of this circular.
3.5. advise their members to make operational changes to provide an option to
such NRI clients who initially opt for CP code but later decide to exit from CP
code, on submission of request through email communication.
4. This circular is issued in exercise of powers conferred under Section 11(1)
of Chapter IV of the Securities and Exchange Board of India Act, 1992, read with
Regulation 30 of Chapter VII of SEBI (Stock Brokers) Regulations, 1992 and
Regulation 51 of Chapter IX of Securities Contracts (Regulation) (Stock Exchanges
and Clearing Corporations) Regulations, 2018, and to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities markets.
5. This circular is available on SEBI website at www.sebi.gov.in under the
category: ‘Legal → Circulars’.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No. 022-26449633
E-mail: aradhanad@sebi.gov.in
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