Currency Derivative Update – Apr’24

In this article, we will discuss:

• Key Updates
• Action Required
• Monitoring & Compliance

In accordance with the latest Reserve Bank of India (RBI) circular (RBI/2023-24/108 A. P. (DIR Series) Circular No. 13 dated January 5, 2024), we wish to notify you of important updates regarding your positions in Exchange Traded Currency Futures and Options.

Key Updates

• Hedging Permitted: As per Clause 3.4 of Annexure 1 of the mentioned RBI circular, positions in Currency Futures and Options are allowed solely for the purpose of hedging. Speculative trading in these instruments is strictly prohibited.
• Non-Hedging Positions: It is essential to note that any position that does not hedge against currency risk is not allowed. Consequently, we urge you to review your open positions to ensure compliance.
• Mandatory Squaring Off: You must square off all open positions in Currency Futures and Options by the close of the market on April 4, 2024. Failure to comply will result in automatic squaring off by the system after 4:45 PM on the same day.
• Trade Restrictions: Please be aware that new trades in Currency Derivatives have been blocked in CO, BO, MIS, and NRML to prevent non-compliant positions.

Action Required

• Review your current positions in Currency Futures and Options.
• Ensure all positions align with hedging requirements and are not speculative.
• Square off any open positions by April 4, 2024, to avoid automatic closure.
• You will not be allowed to take any fresh positions in the currency segment from April 4, 2024, but you will be able to exit your existing positions.

Monitoring & Compliance

We will upload all Currency Derivatives positions in MIS (Intraday) on April 4, 2024. 

Our team is here to assist you in understanding these changes and guiding you through any required actions.

Your cooperation and prompt attention to this matter are highly appreciated. Should you have any questions or need further clarification, please do not hesitate to contact our customer support team.

Thank you for your understanding and for choosing Samco as your trusted trading partner.

Disclaimer: INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING. The asset classes and securities quoted in the film are exemplary and are not recommendatory. SAMCO Securities Limited (Formerly known as Samruddhi Stock Brokers Limited): BSE: 935 | NSE: 12135 | MSEI- 31600 | SEBI Reg. No.: INZ000002535 | AMFI Reg. No. 120121 | Depository Participant: CDSL: IN-DP-CDSL-443-2008 CIN No.: U67120MH2004PLC146183 | SAMCO Commodities Limited (Formerly known as Samruddhi Tradecom India Limited) | MCX- 55190 | SEBI Reg. No.: INZ000013932 Registered Address: Samco Securities Limited, 1004 - A, 10th Floor, Naman Midtown - A Wing, Senapati Bapat Marg, Prabhadevi, Mumbai - 400 013, Maharashtra, India. For any complaints Email - grievances@samco.in Research Analysts -SEBI Reg.No.-INHO0O0005847