Mumbai, Nov. 6 -- The Securities and Exchange Board of India (SEBI) has revised the limits for taking positions in rupee-linked currency derivatives without establishing underlying exposure. The regulator has capped the aggregate outstanding notional value at $5 million across all recognised stock exchanges and currency pairs.

Domestic clients and foreign portfolio investors (FPIs) can take long or short positions of up to $5 million without demonstrating underlying exposure. The limit applies collectively across all currency pairs involving the Indian rupee. It cannot be used separately for different exchanges or currency pairs.

The revision follows the Reserve Bank of India's (RBI) decision on 10 October 2026 to reduce the threshold f...