The Indian rupee has stayed mostly flat through the day as gains from mild weakness in dollar was offset by soaring international oil prices and lackluster cues from domestic equity indices. INR is quoting at Rs 83.44 per dollar, marginally lower on the day. Meanwhile, the National Stock Exchange (NSE) and BSE issued circulars to brokerages on April 1 to ensure that their clients trading in currency derivatives are in line with the Reserve Bank of India's directives, which will come into effect from April 5. According to the central bank notification dated Jan 05, 2024, RBI would allow exchanges to offer forex derivative contracts involving the INR only for contracted exposure or hedging, compared to the current allowance of up to $100 million without any explicit underlying exposure. For exchange traded foreign exchange derivative contracts involving INR, recognized stock exchange shall ensure that the user is allowed to take positions (long or short), without having to establish existence of underlying exposure, up to a single limit of USD 100 million equivalent across all currency pairs involving INR, put together, and combined across all Recognized Stock Exchanges. However, the recognized stock exchanges shall inform users that while they are not required to establish the existence of underlying exposure, they must ensure the existence of a valid underlying contracted exposure which has been not hedged using any other derivative contract and should be in a position to establish the same, if required.
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