April 7, 2014 / 1:42 PM / 3 years ago

SEBI rolls back some restrictions on FX derivatives

Rupee notes are seen in this picture illustration taken in Mumbai June 12, 2013. REUTERS/Vivek Prakash/Files

MUMBAI (Reuters) - The Securities and Exchange Board of India (SEBI) on Monday partially reversed curbs on dollar-rupee forward contracts that were imposed last year after the rupee hit record lows.

SEBI had doubled the margin requirement on the domestic dollar-rupee forward trades last year in a bid to arrest the steep decline of the rupee.

The SEBI on Monday asked exchanges to restore the initial margins and extreme loss margin for dollar-rupee trades to pre July 8, 2013 levels from April 15.

The regulator had also imposed restrictions on total open interest on USD-INR trades, while the central bank had banned banks from proprietary trading in domestic currency futures and the exchange-traded options market.

Those restriction have not been reversed yet.

For the SEBI circular, click link.reuters.com/nap38v

Reporting by Himank Sharma; Editing by Anand Basu

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