Position limits for cross-currency futures and options contracts not involving Indian Rupee on exchanges in International Financial Services Centres (IFSC)
Summary
The circular establishes specific position limits for cross-currency futures and options contracts that do not involve the Indian Rupee within International Financial Services Centres. It defines distinct gross open position caps for Trading Members, Institutional Investors, Eligible Foreign Investors, and Other Clients based on total open interest or a fixed USD equivalent. Stock exchanges are mandated to impose penalties for violations of these position limits under powers conferred by Section 11(1) of the SEBI Act, 1992.
Text
for cross-currency futures and options contracts (not involving Indian Rupee), the position limits for eligible market participants, per currency pair per stock exchange, shall be as follows:
Trading Members (positions on proprietary basis as well as clients’ position) - Gross open position across all contracts not to exceed 15% of the total open interest or USD 1 billion equivalent, whichever is higher
Institutional Investors - Gross open position across all contracts not to exceed 15% of the total open interest or USD 1 billion equivalent, whichever is higher
Eligible Foreign Investors (as referred to in SEBI Circular IMD/HO/FPIC/CIR/P/2017/003 dated January 04, 2017) – Gross open position across all contracts not to exceed 15% of the total open interest or USD 1 billion equivalent, whichever is higher
Other Clients – Gross open position across all contracts not to exceed 6% of the total open interest or USD 100 million equivalent, whichever is higher.
Stock exchanges shall impose appropriate penalties for violation of position limits by eligible market participants.
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 development of, and to regulate the securities market.
Source: SecMarx — Position limits for cross-currency futures and options contracts not involving Indian Rupee on exchanges in International Financial Services Centres (IFSC). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.