RBI eases Norms for FPIs in Currency Derivatives

To enhance the depth of the foreign exchange market, the Reserve Bank of India allowed foreign portfolio investors to participate in the domestic exchange traded currency derivatives through any registered trading member of the exchange concerned for the purpose of hedging the currency risk arising out of the market value of their exposure to Indian debt and equity securities.At the same time, domestic players like exporters and importers would now require underlying exposure if they position beyond $10 million. The onus of ensuring the existence of an underlying exposure would rest with the FPI (Foreign Portfolio Investor) & domestic investor concerned.