Nobody has the “Why” and RBI in this case didn’t even clearly specify the “what exactly” part
Any ideas or theories you folks have about why RBI made this decision with respect to currency markets?
It has “always been the case” so all retailers trading currencies without contracted exposure have been in violation of FEMA ?
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I believe it has to do with maintaining stable currency rate, recently USD has become so volatile and even our economy is growing very fast so it may be tough to maintain stable currency rate as most transactions on exchanges are speculative in nature and RBI will have no clue if any transaction has exposure behind it so they are unable to conclude how much dollar buying.or selling is required.
Also they may want to have full control on currency transactions as currently what trades on exchanges comes under SEBI control. This is just my personal opinion.
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A BIG YES.
Hmm never thought buying 5 lots of USDINR could land me in such trouble 
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Buying call options would require you to prove you are not anti-national.
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For 10 years, RBI was hoping we would hedge our options by taking exposure in the US markets.
It was the ‘Pahle istamaal karein phir vishwas karein’ stage.
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