Tag: Derivatives
-
Rain Derivatives in India: Financial, Insurance, or Climate-Risk Instrument?
[Akanksha Dutta is an Associate at IC RegFin Legal Partners LLP] On May 29, 2026, the National Commodity and Derivatives Exchange (NCDEX) launched ‘RAINMUMBAI’, which is India’s first exchange-traded weather derivative contract. It is structured as a cash-settled futures instrument whose settlement is determined by observed rainfall data rather than physical loss assessment. It is built…
-
Regulating Equity Exposure Offshore Derivative Instruments: A Substance Over Form Imperative for SEBI
[Mustafa Rajkotwala and Shamik Datta are lawyers based in Mumbai] Tracker shares and total return swaps (“TRSs”) are sophisticated financial instruments that allow foreign investors to synthetically replicate exposure to Indian equity markets. These instruments have gained prominence as alternatives to traditional participatory notes (“P-notes”), offering similar economic outcomes while circumventing scrutiny under SEBI’s offshore derivative instruments (“ODI”)…
-
Why is Bilateral Netting Relevant?
[Lakshmi Babu is a corporate lawyer with an interest in financial regulation] The Central Government has recently notified the Bilateral Netting of Qualified Financial Contracts Act, 2020 (“Netting Act”), which intends to implement the process of bilateral netting among eligible financial parties. The Netting Act is effective from October 1, 2020. Netting, in essence, means…