We at Finakon track the regulatory changes. We also use AI to create a summary. We are providing a quick overview of the RBI circulars on a weekly basis on our website. The summary is neither exhaustive nor comprehensive. For accurate information, users shall refer to the original circular of the regulator. Finakon shall not be responsible for inferences drawn based on the summary provided.
Unique Transaction Identifier (UTI) for OTC Derivatives Reporting
The Unique Transaction Identifier (UTI) framework establishes standardized identification and reporting of over-the-counter (OTC) derivative transactions to enable comprehensive market oversight and consistent transaction tracking.
All eligible OTC derivative transactions—including rupee interest rate derivatives, government securities forwards, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives—must be reported to the trade repository operated by Clearing Corporation of India Limited (CCIL-TR) with a valid UTI.
Effective January 01, 2027, each transaction must:
- Be assigned a unique UTI
- Follow global technical standards issued by Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO)
- Include the Legal Entity Identifier (LEI) of the generating entity
- Remain unchanged throughout the contract lifecycle
UTI generation responsibility follows a defined waterfall among counterparties, trading platforms, clearing members, or CCIL-TR where required. Amendments to contracts do not require a new UTI; however, lifecycle events creating a new contract require a fresh identifier.
These directions are issued by the Reserve Bank of India, and market participants must implement the necessary systems and processes to ensure full compliance with reporting and operational guidelines.
Updated ECB Reporting Formats Under FEMA
The Reserve Bank of India has revised the reporting requirements for External Commercial Borrowings (ECB) under the Foreign Exchange Management Act, 1999 (FEMA) to align with the updated ECB regulatory framework.
As part of this update:
- Reporting formats for ECB returns have been modified
- Existing forms under the Master Direction have been replaced
- Form ECB 1 / Revised Form ECB 1 and Form ECB 2 are now prescribed for reporting
- The revised formats substitute Part V – Annex I and Annex II of the Master Direction
Authorised Persons are required to:
- Use the updated forms for all applicable ECB reporting
- Inform and guide their customers/constituents regarding the revised requirements
These directions are issued under Sections 10(4), 11(1), and 11(2) of FEMA and come into effect immediately.
