NRI participation in exchange traded currency derivatives permitted to hedge rupee exposures, subject to designated bank monitoring and position limits. NRIs may trade in ETCD to hedge currency risk on permissible rupee investments and NRE balances, subject to RBI Circular No. 30 and conditions in this circular; they must designate an Authorised Dealer Category I bank (also a clearing member) for monitoring and reporting combined OTC and ETCD positions, and exchanges/clearing corporations must provide transaction details to that bank. The circular sets position limits for specified INR currency pairs, modifies prior SEBI guidance to allow participation consistent with FEMA provisions, and directs exchanges to implement systems, amend rules, notify brokers, and report implementation.
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.
NRI participation in exchange traded currency derivatives permitted to hedge rupee exposures, subject to designated bank monitoring and position limits.
NRIs may trade in ETCD to hedge currency risk on permissible rupee investments and NRE balances, subject to RBI Circular No. 30 and conditions in this circular; they must designate an Authorised Dealer Category I bank (also a clearing member) for monitoring and reporting combined OTC and ETCD positions, and exchanges/clearing corporations must provide transaction details to that bank. The circular sets position limits for specified INR currency pairs, modifies prior SEBI guidance to allow participation consistent with FEMA provisions, and directs exchanges to implement systems, amend rules, notify brokers, and report implementation.
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