Revised Position Limits for Currency Derivatives Contracts
Summary
SEBI has revised the gross open position limits for bank stock brokers in USD-INR currency derivatives to enhance market orderliness. The new limit allows bank stock brokers to hold up to 15% of total open interest or USD 1 billion, whichever is higher. Stock exchanges are directed to implement these changes and inform SEBI of their status.
Text
Gross open position across all contracts shall not exceed 15% of the total open interest or USD 1 billion, whichever is higher.
Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher.
RBI shall keep SEBI and the stock exchanges informed about the bank stock brokers that are authorised to have enhanced position limits.
Stock exchanges are directed to take necessary steps for implementation, bring provisions to notice of stock brokers, disseminate on website, and communicate implementation status to SEBI.
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 — Revised Position Limits for Currency Derivatives Contracts. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.