SEBI removes restrictions on USD-INR contracts

India Infoline News Service | Mumbai |

The regulator also restricted foreign investors from buying government securities with maturity of less than a year

Capital market regulator SEBI (Securities and Exchange Board of India) on Monday partially reversed curbs on dollar-rupee forward contracts that were imposed last year.
In order to arrest the steep fall of the rupee, SEBI had doubled the margin requirement on the domestic dollar-rupee forward trades last year.
The SEBI on Monday asked exchanges to restore the initial margins and extreme loss margin for dollar-rupee trades to pre July 8, 2013, levels from April 15.
The regulator also restricted foreign investors from buying government securities with maturity of less than a year, a move that aims to encourage inflows of long-term overseas fund.
"FIIs/QFIs shall, henceforth, be permitted to invest only in dated government securities having residual maturity of one year or above," Sebi said.
 

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