Revised Position Limits for Exchange Traded Currency Derivatives
Summary
This circular modifies the position limits for Exchange Traded Currency Derivatives based on recommendations from the RBI-SEBI Standing Technical Committee. It increases the client level limit to 6% of total open interest or 10 million USD, whichever is higher. The non-bank trading member level limit is raised to 15% of total open interest or 50 million USD, whichever is higher.
Text
The gross open position of a client across all contracts shall not exceed 6% of the total open interest or 10 million USD, whichever is higher
The gross open position of a Trading Member, who is not a bank, across all contracts shall not exceed 15% of the total open interest or 50 million USD whichever is higher
the position limits for bank trading member would remain as specified in SEBI Circular No. SEBI/DNPD/Cir-38/2008 dated August 6, 2008
the position limits shall be specific to an Exchange and not to the Exchange Traded Currency Derivatives market as a whole
issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956
Source: SecMarx — Revised Position Limits for Exchange Traded Currency Derivatives. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.