*Mumbai: *India's capital market regulator has allowed companies to increase
their exposure to the currency derivatives market by raising position limits
for clients and non-bank trading members.


In a statement on its website on Tuesday, the Securities and Exchange Board
of India said the limit on the gross open position of a client across all
contracts is now 6 per cent of the total open interest or $10 million
whichever is higher. The earlier limit was 6 per cent of total open interest
or $5 million.

For non-bank trading members, the gross open position limit is 15 per cent
of total open interest or $50 million whichever higher, up from 15 per cent
of total open interest or $25 million previously.

The position limits are specific to an exchange and not to the exchange
traded derivatives market as a whole, the statement said.

Currency futures in India are currently offered by three exchanges including
the National Stock Exchange, the Bombay Stock Exchange and the MCX-SX, a
unit of the Multi-Commodity Exchange of India, the country's largest
commodity trading bourse.

Volumes have steadily picked up since trading began in late August last
year. At 10:40 a.m. on Wednesday, the most traded near-month contracts on
the National Stock Exchange and MCX-SX were quoting at 50.9525 and 50.95
respectively, with the total traded volume on both exchanges at about $280
million.

B.KARTHICK
RESEARCH ANALYST

WWW.KENCES1.BLOGSPOT.COM <http://www.kences1.blogspot.com/>

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