Revision of limits relating to requirement of underlying exposure for currency derivatives contracts

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.... 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, EUR-INR, GBP-INR and JPY-INR currency derivatives contracts b....

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....volving 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 the FPI from increasing its existing short positions or creating new short positions in the cu....

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....tion 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 Surveillance Team of Financial Markets Regulation Department (FMRD), RBI. In this regard, stock exchanges / clearing....