Section 7
Net amount.
The Bilateral Netting of Qualified Financial Contracts Act, 2020
About this Act
An Act to ensure financial stability and promote competitiveness in Indian financial markets by providing enforceability of bilateral netting of qualified financial contracts and for matters connected therewith or incidental thereto.
(1) Where parties to the qualified financial contract enter into a netting
agreement, the net amount payable under the close-out netting shall be determined in accordance with
the terms of the netting agreement entered into by the parties.
(2) In the absence of the netting agreement, where the parties to a qualified financial contract fail to agree on the sum with regard to the net amount payable under the close-out netting, such sum shall be determined through arbitration.
(2) In the absence of the netting agreement, where the parties to a qualified financial contract fail to agree on the sum with regard to the net amount payable under the close-out netting, such sum shall be determined through arbitration.