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India central bank relaxes foreign investment norms for exchange-traded FX derivatives
[MUMBAI] India's central bank relaxed rules for foreign investors in exchange-traded currency derivatives by increasing the trading limits allowed without an underlying exposure for the USD/INR pair to US$15 million per exchange from US$10 million earlier.
The Reserve Bank of India also said that foreign portfolio investors can take long or short positions of up to US$5 million in Euro/INR, GBP/INR, JPY/INR pairs in exchange traded derivatives.
The central bank also permitted importers to hedge up to 100 per cent of their eligible limit in the exchange-traded market compared with 50 per cent earlier.