The RBI also said that foreign portfolio investors can take long or short positions of up to $5 million in Euro/INR, GBP/INR, JPY/INR pairs in exchange traded derivatives
The Reserve Bank of India (RBI) relaxed rules for foreign investors in exchange-traded currency derivatives by increasing the trading limits allowed without an underlying exposure for the USD/INR pair to $15 million per exchange from $10 million earlier.
Presently, domestic participants are allowed to take a long (bought) as well as short (sold) position upto USD 10 million per exchange. As a measure of further liberalisation, it has now been decided to increase the limit (long as well as short) in USD-INR pair upto USD 15 million per exchange, RBI said in a notification on Tuesday.
In addition, domestic participants shall be allowed to take long as well as short positions in EUR-INR, GBP-INR and JPY-INR pairs, all put together, upto USD 5 million equivalent per exchange. These limits shall be monitored by the exchanges and breaches, if any, may be reported. For the convenience of monitoring, exchanges may prescribe fixed limits for the contracts in currencies other than USD such that these limits are within the equivalent of USD 5 million, it added.
The RBI also said that foreign portfolio investors can take long or short positions of up to $5 million in Euro/INR, GBP/INR, JPY/INR pairs in exchange traded derivatives.
The central bank also permitted importers to hedge up to 100 percent of their eligible limit in the exchange-traded market compared with 50 percent earlier.
Presently, domestic participants are allowed to take a long (bought) as well as short (sold) position upto USD 10 million per exchange. As a measure of further liberalisation, it has now been decided to increase the limit (long as well as short) in USD-INR pair upto USD 15 million per exchange, RBI said in a notification on Tuesday.
In addition, domestic participants shall be allowed to take long as well as short positions in EUR-INR, GBP-INR and JPY-INR pairs, all put together, upto USD 5 million equivalent per exchange. These limits shall be monitored by the exchanges and breaches, if any, may be reported. For the convenience of monitoring, exchanges may prescribe fixed limits for the contracts in currencies other than USD such that these limits are within the equivalent of USD 5 million, it added.
The RBI also said that foreign portfolio investors can take long or short positions of up to $5 million in Euro/INR, GBP/INR, JPY/INR pairs in exchange traded derivatives.
The central bank also permitted importers to hedge up to 100 percent of their eligible limit in the exchange-traded market compared with 50 percent earlier.
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