Circular regarding Position Limits for Currency Derivatives Contracts (dated – 07.09.2021) – SEBI
View PdfCircular regarding Position Limits for Currency Derivatives Contracts (dated – 07.09.2021) – SEBI
- SEBI vide circular CIR/MRD/DP/20/2014 dated June 20, 2014 inter alia prescribed the position limits in permitted currency pairs. Based on feedback received from Stock Exchanges/ Clearing Corporations and upon a review of the same, it has been decided to revise the client level position limits, per stock exchange.
- Currency pair – Position Limits:
- USD-INR -Gross open position across all contracts shall not exceed 6% of the total open interest or USD 20 million, whichever is higher.
- EUR-INR – Gross open position across all contracts shall not exceed 6% of the total open interest or EUR 10 million, whichever is higher.
- GBP-INR – Gross open position across all contracts shall not exceed 6% of the total open interest or GBP 10 million, whichever is higher.
- JPY-INR – Gross open position across all contracts shall not exceed 6% of the total open interest or JPY 400 million, whichever is higher.
- The revised position limits shall also apply to Non Resident Indians (NRIs) and Category II FPIs that are individuals, family offices, and corporates. The circular(s) SEBI/HO/MRD/DP/CIR/P/2017/63 dated June 28, 2017 and CIR/MRD/DP/20/2014 dated June 20, 2014 read with SEBI circular IMD/FPI&C/CIR/P/2019/124 dated November 05, 2019 shall stand modified to the extent mentioned above.
- Stock Exchanges/ Clearing Corporations may specify additional safeguards/ conditions, as deemed fit, to manage risk and to ensure orderly trading.
- The provisions of this circular shall come into force with immediate effect. ETC.,
