Key Points
Reserve Bank of India Governor Shaktikanta Das on Friday said that there is no change in central banks policy on exchange-traded currency derivatives as such..
He said the central bank has extended the deadline for implementation of currency derivatives circular due to requests from several market participants...
On Thursday, the RBI deferred implementation of its new rules on exchange-traded rupee derivatives by almost a month, highlighting that its policy on this issue has remained unchanged over the years...
The RBIs January 5 circular stated proprietary traders and retail investors are required to demonstrate contracted or prospective currency exposure to participate in the currency derivatives segments provided by exchanges such as the NSE and the BSE...
The RBI said the regulatory framework for participation in ETCDs involving the rupee is guided by the provisions of the Foreign Exchange Management Act (FEMA), 1999, and regulations framed thereunder, which mandate that currency derivative contracts involving rupee both over-the-counter (OTC) and exchange-traded are permitted only for the purpose of hedging of exposure to foreign exchange rate risks...
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