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Below the Quote on Sebi circular on Revision of limits relating to requirement of underlying exposure for currency derivatives contracts by Naman Shah, Senior Vice President at Ohm Dovetail

“The RBI’s circular is a positive step towards strengthening stability and confidence in India’s financial markets. It could help ease excessive speculative pressure on the Indian rupee and reduce volatility arising from large, unhedged currency positions. A more regulated and transparent currency market will also enhance investor confidence, while enabling importers and exporters to navigate currency movements in a more orderly manner.

The move reinforces the importance of stronger regulatory oversight and encourages market participants to focus on genuine hedging rather than excessive speculation. Overall, measures that promote currency stability, strengthen confidence in the rupee and improve the regulatory framework can have a positive bearing on the broader financial ecosystem, including the equity markets.”

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