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Position Limits for CDS

Clients and category III FPIs/Standalone Primary Dealers & NRIs as a client

The gross open positions of the client across all contracts in the respective currency pairs shall not exceed the limits as mentioned below;

Currency Pairs Position limits
USD-INR Gross open position across all contracts shall not exceed 6% of the total open interest or USD 10 million, whichever is higher.
EUR-INR Gross open position across all contracts shall not exceed 6% of the total open interest or EUR 5 million, whichever is higher.
GBP-INR Gross open position across all contracts shall not exceed 6% of the total open interest or GBP 5 million, whichever is higher.
JPY-INR Gross open position across all contracts shall not exceed 6% of the total open interest or JPY 200 million, whichever is higher.

For the purpose of calculation of Client level gross open position, Long position shall include Long Futures, Long Calls, and Short Puts and Short Position shall include Short Futures, Short Calls, and Long Puts.
The Exchange disseminates alerts through e-BOSS System if the gross open position of the client on the basis of PAN across all contracts exceeds the aforesaid position limits or if the gross open position of the client on the basis of PAN across all contracts in a Currency Pair exceeds 3% of the total open interest of the previous day's trade at the end of the day.

Proprietary positions of non-bank Trading members/Standalone Primary Dealers as trading members

The gross open positions of the Trading member in its Proprietary account across all contracts in the respective currency pairs shall not exceed the limits as mentioned below.

Currency Pairs Position Limits
USD-INR Gross open position across all contracts shall not exceed 15% of the total open interest or USD 50 million, whichever is higher.
EUR-INR Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 25 million, whichever is higher.
GBP-INR Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 25 million, whichever is higher.
JPY-INR Gross open position across all contracts shall not exceed 15% of the total open interest or JPY 1000 million, whichever is higher.

Trading members (bank and non-bank), Category I and II FPIs and DII

The gross open positions of the trading member across all contracts in the respective currency pairs shall not exceed the limits as mentioned below.

Currency Pairs Position Limits
USD-INR Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher.
EUR-INR Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 50 million, whichever is higher.
GBP-INR Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 50 million, whichever is higher.
JPY-INR Gross open position across all contracts shall not exceed 15% of the total open interest or JPY 2000 million, whichever is higher.


Within the applicable position limits, position taken by the FPIs in the currency derivative segment shall be subject to the following conditions:

Foreign Portfolio Investors (FPIs) may take long as well as short positions per stock exchange up to the following limit without having to establish the existence of any underlying exposure:

USD-INR currency pair : USD 15 million.
EUR-INR, GBP-INR and JPY-INR currency pairs (all put together) : USD 5 million.

FPIs shall ensure that their short positions at a stock exchange across all contracts in USD-INR pair do not exceed USD 15 million and do not exceed USD 5 million equivalent in EUR-INR, GBP-INR and JPY-INR pairs, all put together at any point of time, subject to the conditions specified in the RBI A.P. (DIR Series) Circular 148 dated June 20, 2014 and RBI A.P. (DIR Series) Circular no. 91 dated March 31, 2015

To take long positions in excess of USD 15 million in USD-INR pair and in excess of USD 5 million equivalent in EUR-INR, GBP-INR and JPY-INR pairs, all put together, FPIs shall be required to have an underlying exposure in Indian debt or equity securities, including units of equity/debt mutual funds.

Position taken by Domestic Clients within the applicable position limit shall be subjected to the following conditions:

Domestic clients may take long as well as short positions per stock exchange up to the following limit without having to establish the existence of any underlying exposure:

USD-INR currency pair : USD 15 million.
EUR-INR, GBP-INR and JPY-INR currency pairs (all put together) : USD 5 million.
  • A predefined conversion factor shall be provided by the Exchange for converting from USD to other 3 currencies. The conversion factor shall be reviewed and updated on Quarterly basis. Trading members shall be intimated on the conversion factor for next quarter in advance through a market wide notice.

Domestic clients may take positions in excess of USD 15 million in USD-INR pair and in excess of USD 5 million equivalent in EUR-INR, GBP-INR and JPY-INR pairs, all put together, subject to the conditions specified in the RBI A.P. (DIR Series) Circular no. 147 dated June 20, 2014 and RBI A.P. (DIR Series) Circular no. 90 dated March 31, 2015.

In case of positions taken to hedge underlying exposure, the position limit linked to open interest shall be applicable at the time of opening a position. Such positions shall not be required to be unwound in the event a drop of total open interest in a currency pair at a stock exchange. However, participants shall not be allowed to increase their existing positions or create new positions in the currency pair till they comply with the position limits.

Kindly refer the Notice 20150430-20 for the Methodology for calculating aggregate limit of USD 5 million equivalents to Currency Pairs EUR-INR, GBP-INR and JPY-INR.

The primary onus of ensuring compliance with the aforementioned provisions shall rest with respective FPI / Domestic Clients.