IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 31 Mar 2015 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

 On 31 March 2015, the Reserve Bank of India liberalised the participation of domestic investors and importers in the foreign currency markets. Concretely, the RBI made the following amendments to the guidelines for participation in the Exchange Traded Currency Derivatives (ETCD) market - 
 

  1. The ceilings of participation by residents and Foreign Portfolio Investors to take long and short positions has been increased from USD 10 million per exchange to positions up to USD 15 million for UDS-INR pairs plus and an additional aggregate USD 5 million for EUR-INR, GBPINR and JPY-INR pairs.
  2. The limit on hedging positions take by resident importers in ETCD markets has been increased from 50% to 100% of the average of the last three years turnover, or the previous years' turnonver, whichever is higher 
  3. Earlier certificates produced by the market participants had to be signed by the company auditors. This has been liberalized and chief financial officer can sign these certificates along with the company secretary or the chief executive/operating officer. 

AFFECTED COUNTRIES

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