• Position Limits for CDS for INR based Currency
• Position Limits for CDS for FCY-FCY

• Position Limits for CDS for INR based Currency
  

Clients and category III FPIs/Standalone Primary Dealers & NRIs as a client

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


For the purpose of calculation of Client level gross open position, Long position shall include Long Futures, Long Calls, and Short Puts and Short Position shall include Short Futures, Short Calls, and Long Puts.
The Exchange disseminates alerts through e-BOSS System if the gross open position of the client on the basis of PAN across all contracts exceeds the aforesaid position limits or if the gross open position of the client on the basis of PAN across all contracts in a Currency Pair exceeds 3% of the total open interest of the previous day's trade at the end of the day.


Proprietary positions of non-bank Trading members/Standalone Primary Dealers as trading members

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



Trading members (bank and non-bank), Category I and II FPIs and DII

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



Foreign Portfolio Investors (FPIs) may take long or short positions without having to establish existence of underlying exposure, upto 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, all put together at any point of time, subject to the conditions specified in the RBI A.P.
(DIR Series) Circular 148 dated June 20, 2014 and RBI A.P. (DIR Series) Circular no. 91 dated March 31, 2015

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.

Position taken by Domestic Clients within the applicable position limit shall be subjected to the following conditions:

Domestic clients may take long or short positions without having to establish existence of underlying exposure, upto a single limit of USD 100 million equivalent, across all currency pairs involving INR, put together, and combined across all the stock exchanges

• A predefined conversion factor shall be provided by the Exchange for converting from USD to other 3 currencies. The conversion factor shall be reviewed and updated on Quarterly basis. Trading members shall be intimated on the conversion factor for next quarter in advance through a market wide notice.
  

Domestic clients may take positions in excess of USD 100 million in all contracts in FCY-INR pairs, subject to the conditions specified in the RBI A.P. (DIR Series) Circular no. 147 dated June 20, 2014 and RBI A.P. (DIR Series) Circular no. 90 dated March 31, 2015.

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.

Kindly refer the quarterly notices “Conversion factor for converting from USD to GBP, EURO and YEN” issued for the Methodology for calculating aggregate limit of USD 100 million equivalents.

The primary onus of ensuring compliance with the aforementioned provisions shall rest with respective FPI / Domestic Clients.

• Position Limits for CDS for FCY-FCY
  

Clients and Category III FPIs

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


For the purpose of calculation of Client level gross open position, Long position shall include Long Futures, Long Calls, and Short Puts and Short Position shall include Short Futures, Short Calls, and Long Puts.
The Exchange disseminates alerts through e-BOSS System if the gross open position of the client on the basis of PAN across all contracts exceeds the aforesaid position limits or if the gross open position of the client on the basis of PAN across all contracts in a Currency Pair exceeds 3% of the total open interest of the previous day's trade at the end of the day.


Proprietary position of non-bank trading member

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



Trading member (banks and non-bank), Category I & II FPIs, Domestic Institutional investors (DIIs) as permitted by the respective sectoral regulators and AD Category - I banks

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


Clearing Member Level position limits: No separate position limit is prescribed at the level of clearing member. However, the clearing member shall ensure that his own trading position and the positions of each stock broker clearing through him is within the limits specified above.