MANU/SDER/0002/2015

Ministry : Securities and Exchange Board of India

Department/Board : Market Regulation Department

Circular No. : CIR/MRD/DP/04/2015

Date : 08.04.2015

Notification/ Circulars Referred : Circular no. CIR/MRD/DP/20/2014 dated June 20, 2014 MANU/SDER/0003/2014;A.P. (DIR Series) Circular no. 90 dated March 31, 2015 MANU/APDR/0037/2015;A.P. (DIR Series) Circular no. 91 dated March 31, 2015 MANU/APDR/0036/2015;A.P. (DIR Series) Circular no. 147 dated June 20, 2014 MANU/APDR/0066/2014

Citing Reference:
Circular no. CIR/MRD/DP/20/2014 dated June 20, 2014 MANU/SDER/0003/2014  Modified

A.P. (DIR Series) Circular no. 90 dated March 31, 2015 MANU/APDR/0037/2015  Referred

A.P. (DIR Series) Circular no. 91 dated March 31, 2015 MANU/APDR/0036/2015  Referred

A.P. (DIR Series) Circular no. 147 dated June 20, 2014 MANU/APDR/0066/2014  Referred

To

All Stock Exchanges and Clearing Corporations,
All Depositories,
All Designated Depository Participants (DDPs) through Depositories,
All Custodians of Securities,
All Foreign Portfolio Investors (FPIs) through their DDPs.

Dear Sir / Madam,

Revision of limits relating to requirement of underlying exposure for currency derivatives contracts.

This is further to SEBI circular no. CIR/MRD/DP/20/2014 dated June 20, 2014, wherein, limits were specified for the USD-INR, EUR-INR, GBP-INR and JPY-INR currency derivatives contracts beyond which market participants were required to establish proof of underlying exposure.

2. RBI vide A.P. (DIR Series) Circular no. 90 dated March 31, 2015 and A.P. (DIR Series) Circular no. 91 dated March 31, 2015 has revised the limits beyond which market participants would be required to establish underlying exposure in the currency derivatives segment. Copy of the RBI circulars are enclosed fo........