Sebi revises currency derivative norms for domestic investors, FPIs; allows to trade up to USD 5 mn
SEBI is in focus in an institutional flows development.
· Economic Times Markets, ET Stocks
Sebi has revised its regulations to permit domestic and foreign portfolio investors to take positions in currency derivatives. Investors can now hold up to USD 5 million without establishing underlying exposure. The new guidelines also require FPIs to ensure their short positions do not exceed this limit.
The analysis
Sustained FII or DII direction moves the whole market, not just the names being bought — it sets the tape's tone.
Why it matters
- With SEBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
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