Trading by banks in currency derivatives to be according to RBI norms

India Infoline News Service | Mumbai |

SEBI said "banks, whether participating in the currency derivatives segment as clients or as stock brokers, shall be guided" by the provisions of RBI.

The Securities and Exchange Board of India (Sebi) said any trading activity of banks in the currency derivative space will be guided by Reserve Bank of India (RBI) guidelines.
SEBI on 20 June 2014 had revised position limits for the market participants in the permitted currency pairs, SEBI said in a circular on 24th July.
The regulator said "banks, whether participating in the currency derivatives segment as clients or as stock brokers, shall be guided" by the provisions of RBI.
SEBI also said that domestic institutional investors can take position in foreign currency up to USD 100 million or equivalent per exchange in the currency derivative segment.
"Gross open position across all contracts shall not exceed 15 per cent of the total open interest or USD 100 million, whichever is higher," SEBI said.
 

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