REVISED POSITION LIMITS FOR EXCHANGE TRADED CURRENCY
DERIVATIVES
Circular No. -
CIR/MRD/DP/ 22 /2013
Dated –
08/07/2013
1. This is in partial modification of SEBI Circular No.
SEBI/DNPD/Cir-38/2008 dated August 6, 2008, SEBI/DNPD/Cir-45/2009 dated March
24, 2009, CIR/DNPD/5/2010 dated July 30, 2010 and CIR/DNPD/2/2012 dated May 23,
2012 which, inter-alia, specified the position limits applicable for Client and
Trading Member for Exchange Traded Currency Derivatives.
2. In consultation with RBI and in view of the recent turbulent phase of extreme volatility in USD-INR exchange rate,
it has been decided to curtail position limits and increase margin requirements
for Currency Derivatives as follows:
a. Margins: Initial and extreme loss margins shall be increased by 100% of
the present rates for USD-INR contracts in Currency Derivatives.
b. Client level position limits: The gross open position of a client across all contracts shall
not exceed 6% of the total open interest or 10 million USD, whichever is lower.
c. Non-bank Trading Member position
limits: The gross open position of a Trading Member, who is not a
bank, across all contracts shall not exceed 15% of the total open interest or
50 million USD whichever is lower.
3. Stock Exchanges are directed to:
a. take necessary steps to put in place systems for implementation of
the circular, including necessary amendments to the relevant byelaws, rules and
regulations;
b. implement provisions of this circular with effect from July 11,
2013;
c. bring the provisions of this circular to the notice of the trading
members/clearing members and also disseminate the same on its website.
Regards
CA. Mona Singhal
Partner
Arpit Gupta & Associates
Chartered Accountants
701, Nirmal Tower,
26, Barakhamba Road,
Connaught Place, Delhi-110001
Mobile:- +91-9873082769
Website: www.caaga.co.in
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