Position Limits for Currency Derivatives Contracts
Summary
SEBI has revised the client-level position limits for currency derivatives contracts across specific currency pairs to manage market risk. These revised limits apply to Non-Resident Indians and Category II FPIs that are individuals, family offices, or corporates, while other categories retain previous limits. The circular was issued under Section 11(1) of the SEBI Act, 1992, and is effective immediately.
Text
Gross open position across all contracts shall not exceed 6% of the total open interest or USD 20 million (USD-INR), EUR 10 million (EUR-INR), GBP 10 million (GBP-INR), or JPY 400 million (JPY-INR), whichever is higher.
The revised position limits shall also apply to Non Resident Indians (NRIs) and Category II FPIs that are individuals, family offices, and corporates.
The position limits for Category I FPIs and Category II FPIs (other than individuals, family offices, and corporates) shall continue to remain the same as specified in earlier circulars.
Stock Exchanges/ Clearing Corporations may specify additional safeguards/ conditions, as deemed fit, to manage risk and to ensure orderly trading.
The provisions of this circular shall come into force with immediate effect.
This circular is being issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992.
Source: SecMarx — Position Limits for Currency Derivatives Contracts. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.