New RBI rule raises alarm among currency derivatives traders

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₹1.46 trillion for the current fiscal year, down by almost 6% from FY23. In terms of participants, proprietary traders accounted for 62.3% of gross turnover, followed by retail investors (19%), others (8.3%), foreign portfolio investors, or FPIs (6.2%), corporates (3.9%), and domestic institutional investors, or DII, at 0.2%. "Though it is important that markets do not run ahead of themselves, and regulators remain vigilant at all times, we must ensure we don't reinforce people's belief that we are a nanny state," said Chirag M.

Shah, counsel, securities law. "You either have to establish or need not have to. You can't have it both ways.

Such ambiguity will deal a body blow to liquidity and volumes. It's better to reduce the $100 million limit, which is acceptable or desirable. This attitude shakes the confidence of markets and increases disputes and litigation.

RBI is a very well regarded institution, but it should stay true to that reputation. " Exchange traded currency derivatives are jointly regulated by RBI and Sebi . Apart from the currency derivatives segment, exchanges offer equities cash and derivatives, interest rate derivatives and commodity derivatives.