SEBI raised the limit for currency derivatives trades

SEBI raised the limit for currency derivatives trades to 15 million US dollar

Securities and Exchange Board of India (SEBI) on 8 April 2015 raised the transaction limit in exchange traded currency derivatives to 15 million US dollars for both foreign and domestic investors without having any underlying exposure. Earlier, the limit was 10 million dollars.

SEBI issued the circular after Reserve Bank of India (RBI) on 1 April 2015 notified the revision.
The capital market regulator, SEBI in a circular said that the Foreign Portfolio Investors (FPIs) and domestic clients can take position (long and short) in foreign currency up to 15 million US Dollars or equivalent per exchange.

The notification said that the Foreign portfolio investors (FPIs) or domestic investors should ensure that their short positions at the stock exchange across all contracts in USD-INR pair do not exceed the limit and do not exceed five million dollar per exchange in EUR-INR, GBP-INR and JPY-INR pairs, all put together.