RESERVE BANK OF INDIA
A.P. (DIR Series) Circular No. 129
May 21, 2012
To,
All Authorised Dealer Category - I Banks
Madam / Sir,
Risk Management and Inter Bank Dealings
Attention of Authorized Dealers Category – I (AD Category – I) banks is
invited to para 2
(v) of the A.P.(DIR Series) Circular No.58 dated December 15, 2011 and the
subsequent clarifications issued by the Foreign Exchange Dealers’ Association of
India(FEDAI) vide its circular SPL-58/Risk Mgmt./2011 dated 21st December 2011
on
the Net Overnight Open Position Limit (NOOPL) of the Authorised Dealers.
- In view of the recent developments in the foreign exchange market, until
further
review, it has been decided as under:
- The current NOOPL of the banks as applicable to the positions involving Rupee
as one of the currencies shall not include the positions undertaken in the
Currency Futures/Options segment in the exchanges.
- The positions in the exchanges (both Futures and Options) cannot be
netted/offset by undertaking positions in the OTC market and vice-versa. The
positions initiated in the exchanges shall be liquidated/closed in the exchanges
only.
- The position limit for the trading member AD Category-I bank in the
exchanges
for trading Currency Futures and Options shall be US$ 100 million or 15 per cent
of the outstanding open interest, whichever is lower.
- Further, the AD Category- I banks are advised that they may bring down their
positions to the above limits within June 30, 2012.
- The directions contained in this circular have been issued under sections
10(4) and
11(1) of the Foreign Exchange Management Act 1999 (42 of 1999) and are without
prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager
RBI/2011-12/569