RBI revises guidelines relating to participation of a person resident in India and Foreign Portfolio Investor (FPI) in the Exchange Traded Currency Derivatives (ETCD) Market

Feb 27, 2018 | by Avantis RegTech Legal Research Team

The Reserve Bank of India (RBI) vide Circular dated February 26, 2018 has revised the guidelines relating to participation of a person resident in India and Foreign Portfolio Investor (FPI) in the Exchange Traded Currency Derivatives (ETCD) Market.

Currently, persons resident in India and FPIs are allowed to take a long (bought) or short (sold) position in USD-INR upto USD 15 million per exchange without having to establish existence of underlying exposure. In addition, residents and FPIs are allowed to take long or short positions in EUR-INR, GBP-INR and JPY-INR pairs, all put together, upto USD 5 million equivalent per exchange without having to establish existence of any underlying exposure.

It has now been decided to permit persons resident in India and FPIs to take positions (long or short), without having to establish existence of underlying exposure, upto a single limit of USD 100 million equivalent across all currency pairs involving INR, put together, and combined across all exchanges.

[RBI/2017-18/134 A. P. (DIR Series) Circular No. 18]

 

URL: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/134APDIR26021839B2053698A94BFDA0CA65D3936FFAF3.PDF


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