TaxTMI 
TaxTMI 
Revision of limits relating to requirement of underlying exposure for currency derivatives contracts
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.... Depository Participants (DDPs) through Depositories; All Custodians of Securities; All Foreign Portfolio Investors (FPIs) through their DDPs. Dear Sir / Madam, Revision of limits relating to requirement of underlying exposure for currency derivatives contracts This is further to SEBI circular no. CIR/MRD/DP/20/2014 dated June 20, 2014, wherein, limits were specified for the USD-INR....
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....a single limit of USD 100 million equivalent, across all currency pairs involving INR, put together, and combined across all the stock exchanges. (b) FPIs shall ensure that their short positions at all stock exchanges across all contracts in FCY-INR pairs do not exceed USD 100 million. (c) In the event a FPI breaches the short position limit, stock exchanges shall restrict ....
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....l rest with the client / FPI and in case of any contravention, the client shall render itself liable to any action that may be warranted by RBI as per the provisions of Foreign Exchange Management Act, 1999 and Regulations, Directions, etc. framed thereunder. These limits shall be monitored by stock exchanges and/or clearing corporations and breaches, if any, shall be reported to the Market Survei....
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.... brokers / clearing members and also disseminate the same on their website; (c) communicate to SEBI the status of implementation of the provisions of this circular. 8. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the developmen....