SEBI relaxes rupee derivatives norms for domestic investors and FPIs; sets $5 million limit
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓SEBI relaxed rupee derivatives norms on Thursday, November 5, allowing domestic investors and FPIs to take positions up to $5 million without underlying exposure.
- ✓The regulator said this limit applies across all currency pairs and exchanges.
- ✓Stock exchanges must now update their systems to implement these new rules for market participants.
Story at a Glance
- Category
- MARKET
- Reported By
- CNBC TV18
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The Securities and Exchange Board of India (SEBI) has revised rules for currency derivatives, allowing domestic investors and foreign portfolio investors (FPIs) to take positions of up to $5 million in rupee-linked contracts without having to establish underlying foreign currency exposure.
In a circular issued on Thursday, November 5, the market regulator said domestic clients and FPIs can take long or short positions in currency derivatives involving the Indian rupee within a combined limit of $5 million in notional value.
The limit will apply to outstanding positions across all rupee-involving currency pairs and recognised stock exchanges at any point. Investors, therefore, cannot claim a separate $5 million limit for each currency pair or exchange.
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CNBC TV18
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