CIRCULAR, CIR/MRD/DP/ 22
/2013, dated July 08, 2013
To
All
Stock Exchanges
Revised Position Limits for Exchange Traded Currency
Derivatives
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.
4. 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.
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