The revised position limits apply to domestic clients, NRIs, and Category II FPIs that are individuals, family offices, and corporates.
SEBI (Securities and Exchange Board of India) has revised the client level position limits for trading in cross-currency futures and options contracts.
Position limits refer to the highest number of options or futures contracts an investor can hold in a single security. Gross open positions encompass all contracts a client may hold across a currency pair.
In a circular, SEBI said it has decided to revise the client level position limits based on feedback received from stock exchanges and clearing corporations.
The new limits are:
- For USD-INR, the gross open position cannot exceed 6 percent of the total open interest or USD 20 million, whichever is higher. The previous cap was USD 10 million.
- For EUR-INR, the gross open position cannot exceed 6 percent of the total open interest or EUR 10 million, whichever is higher. The previous limit was EUR 5 million.
- For GBP-INR, the gross open position cannot exceed 6 percent of the total open interest or GBP 10 million, whichever is higher. The previous limit was GBP 5 million.
- For JPY-INR, the gross open position cannot exceed 6 percent of the total open interest or JPY 400 million, whichever is higher. The previous limit was JPY 200 million.
SEBI said the revised position limits also apply to Non-Resident Indians (NRIs) and Category II Foreign Portfolio Investors (FPIs) that are individuals, family offices, and corporates.
The position limits for Category I FPIs and Category II FPIs (other than individuals, family offices, and corporates) will remain the same.
