Query on Currency derivatives trading post 04 April 2024 in view of RBI circular dated 05 Jan 2024

zerodha has ask to close all open position bedore 4 april 2024 , and after closing all position now if your saying there is extension till may 03 then this is clearly a madness , jai ho RBI ,

So can i take fresh position till 3rd May without submitting declaration???


@VenuMadhav kindly pin the post where RBI has extended till 03MAY

And zerodha did force us to close the position by saying if we dont close it ourselves…zerodha will do it…and then you guys changed your stance…and by then because of panic everybody closed their position to avoid huge loss…and it costed traders lacs of rupees because of it…you guys could have just told a few day earlier when you knew…i just took the trade the day before you guys send the notices…

I hope Zerodha can enable only the instruments expiring before May 3, so there is no market risk, and allow people to give a chance to take positions again.

You could have disabled April and future months FX trading in kite in Feb itself pending clarification.

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Ideally no, now declaration is a must. Time is extended only to close existing positions if any which are used as speculation.

I think 90 percent traders have already closed their position…when the whole thing is deffered why not let the traders trade atleast for a month to recover the losses made…

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The profit may not be guaranteed by extension

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I think currency was the only segment i made money in…nifty and bank nifty is just a bad instrument…I made money by selling option for 9 months straight in nifty…and lost everything in 15 days… extreme manupulation…hardly anybody makes money…Usd inr is a lot more stable and manupulation is very hard as the market is so huge…thora bohut paisa currency mein ban e jata hai…can recover some money in 1 month to recover losses…


Without speculators how can the market stay liquid I am curious to see, in the coming days.

That’s the whole point, they don’t want anyone to speculate, only hedge, eventually currency markets on exchanges will die.

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The circular was issued by RBI today evening - Reserve Bank of India - Press Releases

reiterating that the time given is to wind up current open positions, not to allow further speculative transactions.

The press release said…it has always been like this…why is it a problem suddenly???and it is said nowhere that the 1 month extension is for winding up positions…if the article says its extended for 1 month…let everything be normal for 1 month…just dont let anybody take position in May onwards…

Please read these excerpts from the circular. It’s clear that without underlying exposure one cannot take positions.

The least Zerodha could have done is to inform about likely implication in advance - rather on the last day

Its mentioned in
the circular that these directives shall come in to effect from April 05,2024 and now these directions will come in to effect from May 03,2024. It means that though the framework was consistent over the years but they will come into effect only after 03rd May. Up till then Zerodha should allow any form of trading in currency derivative (i.e speculative or for hedge purpose).

Look at how poorly this whole issue was handled. If rbi position was that 100 mil exposure was always there and only genuine hedgers should be trading usdinr market andbot small retailers - then who in govt regulators rbi, sebi etc approved these brokers to open usdinr trading in first place without adequate declarations ‚Ķ then when at start of year the rbi notification came reiterating this position - then why didn‚Äôt all / any broker give a heads up to retailers and why did they expose traders to contracts beyond March end‚Ķthis is sheer wilful ignorance or bad intent on brokers part for few extra crores of brokerage. How come all brokers forgot bout this regulation? Whatever brokers are saying is just covering their on legal bases now. Both regulators and brokers are to blame here given sequence of events ‚Äď but there will be no accountability. Currency segment is effectively destroyed. Nd what guarantee is there some back dated regulation doesn‚Äôt turn up in commodity and equity markets‚Ķthese guys both regulators nd brokers want brokerage but can‚Äôt ensure a fair ecosystem. If this was west then they would have been sued by now as a class action suit‚Ķbut in India this just isn‚Äôt an option given justice system speed. I lost 31k.even when I had everything right in my trade both direction / time just because optiona were no longer liquid. Effectively for a trader in india there aren‚Äôt any good options left. Any one trading in equities is a losing proposition with the amount of crowding‚Ķother segments are illiquid‚Ķseriously considering Dubai or leaving trading all together‚Ķregulators and brokers are allowing only until they are making money‚Ķthen some day if some crisis happens they ll come up with draconian rules to destroy the market with the babua understanding nothing of the impact there decisions lead to‚Ķreally feeling despondent for indian traders overall