Leading stock exchanges BSE and NSE have informed traders that margin requirements for dollar- rupee contracts will be revised from April 15 following Sebi decision to revoke certain curbs on derivative trading.
On July 9, 2013, Securities and Exchange Board of India, in consultation with RBI, had doubled the initial margins and extreme loss margins for dollar-rupee contracts to help stem the fall in rupee value.
Earlier this week, the capital market regulator decided to restore the margins for USD-INR contracts to pre-July 8, 2013 rates.
Accordingly, NSE in a notice said that extreme margins for USD-INR futures contracts would be revised back to original level of 1 per cent of gross open position, from 2 per cent.
Extreme loss margins on USD-INR futures contracts would be revised to 1.5 per cent from the existing 3 per cent levels.
The revised initial margin requirements for USD-INR contracts (both futures and options) would be "based on a worst scenario loss of a portfolio of an individual client comprising its positions in options and USDINR op futures contracts," NSE said.
