Position Limits

• Position limits of 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 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

The Exchange would disseminate alerts if the gross open position of the client across all members (on the basis of PAN) across all contracts exceeds the aforesaid position limits or if the gross open position of the client across all members (on the basis of PAN) across all contracts exceeds 3% of the total open interest of the previous day's trade at the end of the day

• Proprietary position limits of non-bank stock brokers

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

• Position limits of Stock Brokers (bank and non-bank), Category I and II FPIs

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

Position taken by the FPIs in the currency derivative segment shall be subject to the following conditions:

- Foreign Portfolio Investors (FPIs) may take long as well as short positions per stock exchange up to the following limit without having to establish the existence of any underlying exposure:

USD-INR currency pair: USD 15 million;
EUR-INR, GBP-INR and JPY-INR currency pairs (all put together): USD 5 million.

FPIs shall ensure that their short positions at a stock exchange across all contracts in USD-INR pair do not exceed USD 15 million and do not exceed USD 5 million equivalent in EUR-INR, GBP-INR and JPY-INR pairs, all put together at any point of time.

To take long positions in excess of USD 15 million in USD-INR pair and in excess of USD 5 million equivalent in EUR-INR, GBP-INR and JPY-INR pairs, all put together, 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 the Domestic Clients in the currency derivative segment shall be subject to the following conditions:

- Domestic clients may take long as well as short positions per stock exchange up to the following limit without having to establish the existence of any underlying exposure:

USD-INR currency pair : USD 15 million;
EUR-INR, GBP-INR and JPY-INR currency pairs (all put together): USD 5 million.

Domestic clients may take positions in excess of USD 15 million in USD-INR pair and in excess of USD 5 million equivalent in EUR-INR, GBP-INR and JPY-INR pairs, all put together, 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.