TaxTMI 
TaxTMI 
Guidelines on trading of Currency Futures and Exchange Traded Currency Options in Recognized Stock Exchanges - Introduction of Cross-Currency Futures and Exchange Traded Option Contracts
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion No. FEMA. 25/RB-2000 dated May 3, 2000), as amended from time to time, the Currency Futures (Reserve Bank) Directions, 2008 dated August 6, 2008 and Exchange Traded Currency Options (Reserve Bank) Directions, 2010 dated July 30, 2010 as amended from time to time and also A.P. (DIR Series) circular No. 147 and circular no. 148 both dated June 20, 2014, as amended from time to time, in terms of which persons resident in India and persons resident outside India viz., foreign portfolio investors (FPIs) are permitted to participate in the currency futures and exchange traded currency options market in India subject to the terms and conditions mentioned in the aforementioned notifications and guidelines, ibid. 2. Currently market participan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s and FPIs, are allowed to take positions in the cross-currency futures and exchange traded cross-currency option contracts without having to establish underlying exposure subject to the position limits as prescribed by the exchanges. 5. The existing position limits of USD 15 million for USD-INR contracts and USD 5 million for non USD-INR contracts, all put together, per exchange, for residents and FPIs, without having to establish underlying exposure, shall remain unchanged. The hedging procedure for residents as laid down in A.P. (DIR Series) circular No. 147 dated June 20, 2014 and for FPIs as laid down in A.P. (DIR Series) circular no. 148 dated June 20, 2014 shall also remain unchanged. A summary of the position limits is provided in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ves the following directions to all the persons dealing in currency futures. 1. Short title and commencement of the directions These Directions may be called the Currency Futures (Reserve Bank) (Amendment) Directions, 2015 and they shall come into force with effect from December 10th, 2015. 2. Amendment to Currency Futures (Reserve Bank) Directions, 2008 (ii) In paragraph 4, (a) the existing clause (a), shall be substituted by: "(a) Foreign Currency-Indian Rupee contracts, viz. USD-INR, EUR-INR, GBP-INR and JPY-INR and Cross Currency contracts (not involving the Indian Rupee), viz. EUR-USD, GBP-USD and USD-JPY are allowed to be traded." (b) the existing clause (b), shall be substituted by: "(b) The size of the USD-INR and USD-JPY co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s conferred by section 45W of the Reserve Bank of India Act, 1934 and of all the powers enabling it in this behalf, hereby gives the following directions to all the persons dealing in currency futures. 1. Short title and commencement of the directions These directions may be called the Exchange Traded Currency Options (Reserve Bank) (Amendment) Directions, 2015 and they shall come into force with effect from December 10th, 2015. 2. Amendment to Exchange Traded Currency Options (Reserve Bank) Directions, 2010 (i) In para 3, for sub-para (i) the following shall be substituted: "Currency option contracts are permitted in USD-INR spot rate, EUR-INR spot rate GBP-INR spot rate and JPY-INR spot rate. Cross currency option contracts (not invo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tract. The settlement price in Indian Rupees of the cross-currency contracts shall be computed using the Reserve Bank's USD-INR Reference Rate and the corresponding exchange rate published by Reserve Bank for EUR-INR, GBP-INR and JPY-INR on the expiry date of the contract." (Chandan Sinha) Executive Director Annex III to A.P. (DIR Series) Circular No. 35 dated December 10, 2015 Position Limits for market participants in the Exchange Traded Currency Derivatives Type of market participant Position limit for FCY-INR contracts (both futures and options) Position limit for cross-currency contracts (both futures and options) Clients and Foreign Portfolio Investors (FPIs) USD 15 million for USD-INR pair and USD 5 million for EUR-INR, GBP-....