SEBI increases currency derivatives exposure limit to USD 5 million for FPIs and domestic clients effective 5 November 2026.
Higher Currency Derivatives Limits
Through a circular dated 5 November 2026, SEBI has increased the permissible exposure limit in INR currency derivatives to USD 5 million for both Foreign Portfolio Investors (FPIs) and domestic clients.
The revised cap addresses hedging requirements amid growing trade and investment flows. Intermediaries must implement enhanced monitoring systems to prevent breaches and ensure reporting under the new threshold.
The move enhances risk management flexibility and aligns with market demand for scalable currency hedging. Legal teams should review client agreements and internal compliance protocols to reflect updated position limits.
Citations
- SEBI Circular on Currency Derivatives Limits, 2026
