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Position Limits


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 computing the client 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.

Currency Pairs Position limits
USD-INR Gross open position across all contracts shall not exceed 6% of the total open interest or USD 10 million, whichever is higher.
EUR-INR Gross open position across all contracts shall not exceed 6% of the total open interest or EUR 5 million, whichever is higher.
GBP-INR Gross open position across all contracts shall not exceed 6% of the total open interest or GBP 5 million, whichever is higher.
JPY-INR Gross open position across all contracts shall not exceed 6% of the total open interest or JPY 200 million, whichever is higher.
EUR-USD Gross open position across all contracts shall not exceed 6% of the total open interest or EUR 10 million, whichever is higher.
GBP-USD Gross open position across all contracts shall not exceed 6% of the total open interest or GBP 10 million, whichever is higher.
USD-JPY Gross open position across all contracts shall not exceed 6% of the total open interest or USD 10 million, whichever is higher.

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

Currency Pair Position limits
USD-INR Gross open position across all contracts shall not exceed 15% of the total open interest or USD 50 million, whichever is higher.
EUR-INR Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 25 million, whichever is higher.
GBP-INR Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 25 million, whichever is higher.
JPY-INR Gross open position across all contracts shall not exceed 15% of the total open interest or JPY 1000 million, whichever is higher.
EUR-USD* Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 50 million, whichever is higher.
GBP-USD* Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 50 million, whichever is higher.
USD-JPY* Gross open position across all contracts shall not exceed 15% of the total open interest or USD 50 million, whichever is higher.

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

Product Stock Brokers (bank and non-bank)
USD-INR For Bank and Non-Bank Trading member: Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher. For Bank trading member as authorized by RBI: Gross open position across all contracts shall not exceed 15% of the total open interest or USD 1 billion, whichever is higher.
EUR-INR Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 50 million, whichever is higher.
GBP-INR Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 50 million, whichever is higher.
JPY-INR Gross open position across all contracts shall not exceed 15% of the total open interest or JPY 2000 million, whichever is higher.
EUR-USD* Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 100 million, whichever is higher.
GBP-USD* Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 100 million, whichever is higher.
USD-JPY* Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher.


*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.

Product FPI Category I and FPI Category II (other than individuals, family offices and corporates) FPI Category II (individuals, family offices and corporates)
USD-INR Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher Gross open position across all contracts shall not exceed 6% of the total open interest or USD 10 million, whichever is higher
EUR-INR Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 50 million, whichever is higher Gross open position across all contracts shall not exceed 6% of the total open interest or EUR 5 million, whichever is higher
GBP-INR Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 50 million, whichever is higher Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 5 million, whichever is higher
JPY-INR Gross open position across all contracts shall not exceed 15% of the total open interest or JPY 2000 million, whichever is higher Gross open position across all contracts shall not exceed 6% of the total open interest or JPY 200 million, whichever is higher
EUR-USD* Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 100 million, whichever is higher Gross open position across all contracts shall not exceed 6% of the total open interest or EUR 10 million, whichever is higher
GBP-USD* Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 100 million, whichever is higher Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 10 million, whichever is higher
USD-JPY* Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher. Gross open position across all contracts shall not exceed 6% of the total open interest or USD 10 million, whichever is higher.

 

  • 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.

 

Updated on: 23/02/2021
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