India markets regulator eases currency derivatives rules

By: | Published: June 22, 2016 9:35 PM

India's stock market regulator relaxed currency derivatives rules on Wednesday, allowing participants to continue to hold on to their open position limits even if total open interest in a currency pair falls at a stock exchange.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 percent, hovering just below its two-month high hit the previous day. Japan's Nikkei slipped 0.3 percent. (Reuters)Earlier, market participants had to reduce their open position limits in proportion to the drop in total open interest. (Reuters)

India’s stock market regulator relaxed currency derivatives rules on Wednesday, allowing participants to continue to hold on to their open position limits even if total open interest in a currency pair falls at a stock exchange.

Market participants will, however, have to gradually bring down their open positions to comply with applicable limits within a time period specified by the stock exchanges, the Securities and Exchange Board of India said.

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Earlier, market participants had to reduce their open position limits in proportion to the drop in total open interest.

India allows market participants to have open position of upto 15 percent of the total open interest, or $100 million gross open limit for USD/INR pair, whichever is higher.

For banks, the position limit is 15 percent of total open interest or $1 billion, whichever is higher.

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