FPI participation in currency derivatives permitted subject to position limits, underlying exposure requirement and reporting obligations. FPIs are permitted to trade in the exchange traded currency derivatives segment if eligible under FEMA schedules, subject to position limits per stock exchange. FPIs may take long and short positions up to prescribed thresholds without underlying exposure; exceeding long thresholds requires underlying exposure in Indian debt or equity securities. Short positions have a separate cap and breaches restrict further shorting until compliance. Clearing corporations and custodians must report aggregated positions and underlying exposure market values to the FPI's designated bank.
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.
FPI participation in currency derivatives permitted subject to position limits, underlying exposure requirement and reporting obligations.
FPIs are permitted to trade in the exchange traded currency derivatives segment if eligible under FEMA schedules, subject to position limits per stock exchange. FPIs may take long and short positions up to prescribed thresholds without underlying exposure; exceeding long thresholds requires underlying exposure in Indian debt or equity securities. Short positions have a separate cap and breaches restrict further shorting until compliance. Clearing corporations and custodians must report aggregated positions and underlying exposure market values to the FPI's designated bank.
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