Dynamic price bands for currency options must follow a uniform computation and guarded relaxation to prevent market manipulation. Directs stock exchanges to implement a dynamic price band mechanism for EUR INR, GBP INR and JPY INR currency option contracts based on theoretical prices, with a uniform computation and relaxation process that considers underlying price movement, volatility, currency news, and cross market behaviour, and that prevents misuse for manipulation. Exchanges and clearing corporations must submit approval proposals including contract specifications, risk management and surveillance frameworks, implement systems and rule amendments, notify market participants, and report implementation status to the regulator.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Dynamic price bands for currency options must follow a uniform computation and guarded relaxation to prevent market manipulation.
Directs stock exchanges to implement a dynamic price band mechanism for EUR INR, GBP INR and JPY INR currency option contracts based on theoretical prices, with a uniform computation and relaxation process that considers underlying price movement, volatility, currency news, and cross market behaviour, and that prevents misuse for manipulation. Exchanges and clearing corporations must submit approval proposals including contract specifications, risk management and surveillance frameworks, implement systems and rule amendments, notify market participants, and report implementation status to the regulator.
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