Position Limits

The gross open positions of the proprietary account across all contracts in the respective currency pairs shall not exceed the limits as mentioned below. For the purpose of computing the proprietary level gross open position, Long position shall be considered as Long Futures, Long Calls, and Short Puts and Short Position shall be considered as Short Futures, Short Calls, and Long Put

The gross open positions of the trading member across all contracts in the respective currency pairs shall not exceed the limits as mentioned below.

*Also applicable for Domestic Institutional investors (DIIs) as permitted by the respective sectoral regulators and AD Category–I banks

The position limit linked to open interest shall be applicable at the time of opening a position. Such positions shall not be required to be unwound immediately by the trading member in the event of a drop of total open interest.

However, in the aforementioned scenario, the trading member shall not be allowed to increase their existing positions or create new positions till they comply with the applicable position limits.

Position Limits for Foreign Portfolio Investor

The gross open positions of the FPI across all contracts in the respective currency pairs shall not exceed the limits as mentioned below. For the purpose of computing the FPI level gross open position, Long position shall be considered as Long Futures, Long Calls; and Short Puts and Short Position shall be considered as Short Futures, Short Calls, and Long Puts.

• In case of positions taken to hedge underlying exposure, the position limit linked to open interest shall be applicable at the time of opening a position. Such positions shall not be required to be unwound in the event a drop of total open interest in a currency pair at a stock exchange. However, participants shall not be allowed to increase their existing positions or create new positions in the currency pair till they comply with the position limits.
• FPIs may take long or short positions without having to establish existence of underlying exposure, up to a single limit of USD 100 million equivalent, across all currency pairs involving INR, put together, and combined across all the stock exchanges
• FPIs shall ensure that their short positions at all stock exchanges across all contracts in FCY-INR pairs do not exceed USD 100 million.
• To take long positions in excess of USD 100 million in all contracts in FCY-INR pairs, FPIs shall be required to have an underlying exposure in Indian debt or equity securities, including units of equity/debt mutual funds
• The Clearing Corporation shall provide details on the FPI’s day-end and day’s highest open positions at end of day to the custodians of the FPI.
• The custodian of the FPI shall aggregate the positions taken by the FPI on the currency derivatives segments of all the stock exchanges and forward such details to the designated bank of the FPI. The custodian of securities of the FPI shall also provide the market value of applicable underlying exposure of the FPI to the designated bank of the FPI.
• The onus of complying with the above provisions shall rest with the FPI and in case of any contravention, the FPI shall render itself liable to any action that may be warranted by RBI as per the provisions of Foreign Exchange Management Act, 1999 and Regulations, Directions, etc. framed thereunder. These limits shall be monitored by stock exchanges and/or clearing corporations and breaches, if any, shall be reported to RBI.