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Capital market regulator SEBI today relaxed the higher margin requirement it had placed on currency derivatives in July last year, when the rupee was in a free-fall mode against the dollar.
“...it has now been decided to restore the margins for USD-INR contracts to pre July 08, 2013 rates,” Sebi said in a circular.
In July 2013, Sebi, in consultation with Reserve Bank of India, had increased the initial margins and extreme loss margins by 100% for USD-INR contracts in the currency derivatives segment.
This and other regulatory restriction introduced by the two regulators last year had hit trading volumes on stock exchanges. Volumes had declined as much as 80% from their peak in June last year.
