Section 7 of Bilateral Netting of Qualified Financial Contracts Act, 2020: Net amount

The Bilateral Netting of Qualified Financial Contracts Act, 2020

Chapter-III Invocation of Close-Out Netting

Section 7: Net amount.

7. (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.


 


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