RBI Extends Deadline to Implement Currency Contract Rules to 3rd May, 2024

National Stock Exchange has released a circular vide number - NSE/CD/6140 and dated 1st April, 2024. This has a reference to RBI circular dated Jan 5, 2024 about trading in Currency Derivative Segment. According to the circular, Currency traders who have positions, need to produce evidence of  contracted exposure to the underlying (refer attached Circulars) and should be in a position to establish the same, if required. 

This circular originally was to come into effect from 5th April, 2024 but is now extended to 3rd May, 2024 . To comply with the requirements we had already marked currency segment under square off mode which prevents taking fresh positions and we had also squared off all existing positions on 4th April 2024.

As the revision is only a postponement of implementation date and still requires establishment of exposure to contracted underlying, we will continue to restrict fresh positions in Currency Segment.

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