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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