Mumbai, Nov. 5 -- The Securities and Exchange Board of India (SEBI) has revised currency derivatives trading limits, allowing domestic investors and foreign portfolio investors (FPIs) to trade up to USD 5 million in rupee-linked contracts without showing proof of underlying foreign currency exposure.

In a circular issued on Thursday, the market regulator said domestic clients and FPIs can take long or short positions in currency derivatives involving the Indian rupee (INR) within the prescribed limit across all recognised stock exchanges.

"Domestic clients and Foreign Portfolio Investors (FPIs) may take long or short positions in currency derivatives contracts involving INR, without having to establish the existence of underlying exposu...