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The Securities and Exchange Board of India sets position limits for cross-currency futures and options contracts that do not involve the Indian Rupee on exchanges in International Financial Services Centres. Trading members, institutional investors, and eligible foreign investors hold a gross open position limit of 15% of the total open interest or USD 1 billion equivalent, whichever is higher. Other clients hold a gross open position limit of 6% of the total open interest or USD 100 million equivalent, whichever is higher. Stock exchanges impose penalties for any limit violation.
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[Image omitted. See the official document.]
CIRCULAR
SEBI/HO/MRD/DRMNP/CIR/P/2017/43
May 17, 2017
All recognized Stock Exchanges and Clearing Corporations in International Financial Services Centres
Dear Sir/Madam
Position limits for cross-currency futures and options contracts (not involving Indian Rupee) on exchanges in International Financial Services Centres (IFSC)
Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 were notified on March 27, 2015, which came into force on April 01, 2015 wherein currency derivatives were specified as permissible securities in which dealing may be permitted by stock exchanges in IFSC.
Stock exchanges shall impose appropriate penalties for violation of position limits by eligible market participants.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Yours faithfully
(Sanjay Purao)
Deputy General Manager
Division of Risk Management and New Products
Market Regulation Department
Email: sanjayp@sebi.gov.in
