SEBI raised the limit for currency derivatives trades to 15 million US dollar [ Current Affairs ]


Capital market regulator, SEBI (Securities and Exchange Board of India) raised the transaction limit in exchange traded currency derivatives from 10 million to 15 million US dollars for both foreign and domestic investors without having any underlying exposure. The capital market is a long term market regulator and SEBI issued the circular after Reserve Bank of India (RBI) on 1 April 2015 notified the revision.

  • According to the SEBI notification, it 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.
  • 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.
  • SEBI was established in 1988 and given statutory powers on 12 April 1992 through the SEBI act, 1992 under government of India and headquarter in Maharashtra, Mumbai.

- Published on: April 16, 2015