Urgent & Important RBI Mandate for Currency Derivatives Segment (CDS) Trading Effective April 5th, 2024

  • Wednesday, 03 April 2024

The Reserve Bank of India (RBI) has mandated that traders must have a compulsory underlying contracted exposure to foreign currency to participate in the currency derivatives segment (CDS). This implies that exchange-traded rupee derivative transactions can only be utilized for hedging purposes with valid proof of exposure.

This mandate will come into effect from 5th April 2024. Therefore, we request you to provide Underlying exposure proof or else square off your open positions by 3 PM on 4th April 2024. After this, all open currency derivative positions will be squared off by Risk Management Systems (RMS).

For more information, you can also refer RBI circular HERE

Note- No fresh position will be allowed in the CDS segment effective immediately without valid proof of underlying.