SEBI issues circular on currency future trade

Mumbai, Aug 6 (UNI) The Market regulator Securities and Exchange Board of India (SEBI) has issued a seperate set of directives on exchage traded currecy futures, complying with the guidelines issued by the Reserve Bank.

In a circular released today on trading in exchange traded currency derivatives for recognized stock exchanges and their clearing corporations clearing houses, clearing members and trading members, the market regulator stipulated that the gross open position of a trading member, across all contracts, which should not exceed 15 per cent of the total open interest or USD 25 million, whichever is higher.

However, the gross open position of a Trading Member, which is a bank, across sall contracts, shall not exceed 15 per cent of the total open interest or USD 100 million USD, whichever is higher, SEBI stated.

The trading member should have approved users and sales personnel, who have certification as applicable to Exchange Traded Equity Derivatives. However, this requirement shall not be applicable in respect of a trading member, which is a bank, for a period of one year from the date of this circular, it added.

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