Namaskar,


We would like to draw your attention to an important update regarding currency derivatives.


According to a recent notification from the RBI, users can now take long or short positions in INR pairs, namely USDINR, EURINR, GBPINR and JPYINR only against a contracted exposure, which means exposure arising from export/import or capital account transactions.


Please refer to clause 1(i)(b) for the definition of contracted exposure, and clauses 3.3(i) and 3.4(i)(a) for details on positions to be taken against contracted exposure.

Exchanges (NSE/BSE) have also intimated the trading members of the same today.


We kindly request you to take note of the notification and ensure compliance, failing which it may attract action under RBI regulations.

The notification will come into effect on April 5, 2024.
As a precaution, if you have an outstanding position in currency, we will be putting in square off mode from April 2, 2024, and will not be allowed to carry forward the position beyond April 4, 2024, end of day.


However, in case, you want to carry the position beyond April 4, 2024 kindly share the supporting documents at service.securities@kotak.com.


Your cooperation in this matter is greatly appreciated.
Thank you for your attention to this matter.


If you have any queries, please feel free to contact us at service.securities@kotak.com. For immediate assistance, you may reach out to Shubham Keshari, Manager, at shubham.keshari@kotak.com.


Thank you,
Team Kotak Securities