ATHENA LEGAL UPDATE ON BILATERAL NETTING OF QUALIFIED FINANCIAL CONTRACTS ACT, 2020
- Dec 9, 2020
- 1 min read
In our series of updates we look at the Bilateral Netting of Qualified Financial Contracts Bill, 2020 which seeks to provide a legal framework for bilateral netting of qualified financial contracts which are over the counter derivatives contracts.
Bilateral Netting refers to offsetting of all claims arising from dealings between two parties, to determine a net amount payable or receivable from one party to other. While
Qualified financial contracts entails any bilateral contract notified as a QFC by the relevant authority. The authority can be RBI, SEBI, IRDA to name a few.
Click here to know more.
Just realized RBI and SEBI are the authorities for these QFCs under the 2020 Act. It's super handy to have a rounding calculator for sig figs when crunching those net amounts.