Sebi eases currency derivatives rules
Sabi says market participants will have to gradually bring down their open positions to comply with applicable limits within a time period specified by the stock exchanges
Mumbai: The Securities and Exchange Board of India (Sebi) on Wednesday clarified that in order to ease trading requirements in the currency derivatives segment, the position limit linked to open interest will be applicable at the time of opening a position.
Such positions will not be required to be unwound in the event of a drop of total open interest in a currency pair at the stock exchange, Sebi said.
However, during such an event the market participants will not be allowed to increase their existing positions or create new positions in the currency pair till they comply with the applicable position limits, Sebi clarified.
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