Mumbai, Nov. 6 -- SEBI has allowed domestic and foreign portfolio investors to take positions of up to USD 5 million in currency derivatives contracts without having to establish an underlying exposure. In a circular on Thursday, Sebi revised norms aligned with the Reserve Bank of India's (RBI) October 10 circular, which changed the threshold for taking positions in foreign exchange derivatives involving the rupee without establishing an underlying exposure

FPIs must ensure that their short positions across all contracts in foreign currency-rupee pairs do not exceed USD 5 million. For positions above the USD 5 million threshold, FPIs taking the long positions must have an underlying exposure in Indian debt or equity securities, including...