Subscribe to BCA Journal Know More

July 2012

A.P. (DIR Series) Circular No. 129, dated 21-5-2012 — Risk Management and Inter-Bank Dealings.

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
fiogf49gjkf0d

This Circular provides that:

(i) The current Net Overnight Open Position Limit (NOOPL) of banks as applicable to the positions involving Rupee as one of the currencies will not include the positions undertaken in the Currency Futures/Options segment in the exchanges.

(ii) The positions in the exchanges (both Futures and Options) cannot be netted/offset by undertaking positions in the OTC market and vice versa. The positions initiated in the exchanges mt be liquidated/closed in the exchanges only.

(iii) The position limit for the Banks in the exchanges for trading Currency Futures and Options will be US INR6,265 million or 15% of the outstanding open interest, whichever is lower.

Further, Banks, whose positions are not in line with the above requirements, are required to bring down their positions to the above limits by June 30, 2012.

Download PDF

You May Also Like

SEBI AMENDS GUIDELINES TO SETTLE VIOLATIONS — Complex Provisions Make Professional Help Inevitable

TDS: Interest: Section 2(28A) and section 194A of Income-tax Act, 1961: Interest on amount deposited by allottees on account of delayed allotment of flats: Interest on account of damages: Tax need not be deducted at source.