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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.


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

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 Pairs 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.

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

Currency Pairs Position Limits
USD-INR Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 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.
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.


Domestic clients shall ensure that the position across exchanges is within the prescribed limit of USD 100 million equivalent. (Refer NSE circular: NSE/SURV/37410 dated April 03, 2018 and SEBI circular: SEBI/HO/MRD/DP/CIR/P/2018/50 dated March 15, 2018)

If position is in excess of USD 100 million equivalent, clients shall provide disclosure of underlying exposure to Trading Member as per existing practice.

In addition to the above, Exchanges shall monitor limits as per existing mechanism. When the client position reaches USD 75 million equivalent at a particular exchange, that exchange will intimate/caution the Trading Member(s) of that particular client regarding the combined single limit of USD 100 million equivalent. On basis of reply received by the Trading member, the exchange will take on record whether client has committed to remain within the limit or has confirmed about existence of underlying exposure.

Further, the member will be alerted if the client position reaches USD 85 million equivalent and USD 95 million equivalent respectively.

In case of FPI, existing mechanism for monitoring by the custodians shall remain unchanged.

For conversion to USD 100 million equivalent, members shall use the conversion ratio provided by Exchange’s on quarterly basis.

Clients / FPI have to ensure that their positions remain within the limit prescribed in para 5 of NSE circular no NSE/SURV/29575 dated April 29, 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.

Position limit for Exchange Traded Cross Currency Derivatives contracts on EUR-USD, GBP-USD and USD-JPY currency pairs

  1. Position limits for stock brokers (banks and non-bank), Category I & II FPIs, Domestic Institutional investors (DIIs) as permitted by the respective sectoral regulators and AD Category–I banks
    Currency Pairs Position Limits
    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. The aforementioned limits shall be the total limits available to the stock brokers for taking positions on proprietary basis and for positions of their clients.

     
  2. Proprietary position of non-bank stock brokers
    Currency Pairs Position Limits
    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.

     
  3. Position limits for Clients and Category III FPIs
    Currency Pairs Position Limits
    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.

     
  4. Proprietary positions created in FCY-INR pairs (USD-INR, EUR-INR, GBP-INR and JPY-INR) shall have following limits
    Currency Pairs Position Limits
    Single INR limit for proprietary position for bank stock broker Single INR limit for proprietary position for non-bank stock broker
    Higher of 15% of total OI across all FCY-INR pairs or USD 200 million Higher of 15% of total OI across all FCY-INR pairs or USD 100 million
Updated on: 29/11/2019 12:00
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