New Delhi: Individual traders and brokers can trade more in currency futures as the market regulator Sebi on Tuesday doubled the limit of daily positions small traders and larger brokers can take to $10 million and $50 million, respectively.
In a circular, the Securities and Exchange Board of India (Sebi) said that it has revised the gross open position at a client level (individual trader) to $10 million, or 6% of the total open interest, from $5 million prescribed earlier.
For non-banking trading members (large brokers), the gross open position limit has been doubled to $50 million, or 15% of the total open interest, from $25 million, it said.
However, the position limit for a trading member which is a bank would remain the same at $100 million, or 15% of the total open interest (outstanding contracts held by an investor), the regulator said.
Sebi revised position limits based on the recommendations given by the RBI-Sebi Standing Technical Committee.
The regulator also clarified that the position limits would be specific to an exchange and not to the exchange-traded currency derivatives market as a whole.
Currently, the NSE, BSE and the MCX are the three entities that offer currency derivatives.