The Reserve Bank of India (RBI) has deferred the implementation of currency derivative regulations by a month to 3 May 2024.

Banking & Finance

The Reserve Bank of India (RBI) has deferred the implementation of currency derivative regulations by a month to 3 May 2024. RBI had tightened rules on currency derivatives to curb speculative trading. National Stock Exchange (NSE) and BSE have directed their member brokers to take note of RBI notification dated January 5, 2024, stating that trade in currency derivatives can only be undertaken for hedging purposes after April 5, 2024. This means that traders are expected to use these instruments to mitigate forex risk rather than for speculative trading. The breakdown of market participants includes proprietary traders, hedgers, and retail investors. These changes indicate a tightening of regulations aimed at aligning currency derivatives trading with their intended purpose of hedging forex risk.


     

     

     

 

     


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