Zerodha, a stock broking company, has issued a notice to its clients on April 2, instructing them to close their FX derivatives positions before April 5 to adhere to new RBI regulations.
“In accordance with RBI guidelines, traders must possess exposure to the underlying currency in order to engage in currency derivatives trading on stock exchanges. Please ensure the closure of any open positions by April 5, 2024, to comply with RBI regulations,” the firm stated in a communication on X.
Effective April 4, 2024, users will be permitted to exit their existing positions but will be restricted from initiating new positions in currencies. Should users intend to open new positions, they will be required to submit a declaration form.
The RBI has made it mandatory for traders to have a contracted underlying exposure to foreign currency if they wish to participate in the currency derivatives segment.
