RBI stance on underlying exposure for FX derivatives unchanged, sources say

The Reserve Bank of India (RBI) has not materially changed its stance on exchange-traded rupee derivatives and neither has it asked brokerages for proof of their clients' underlying forex exposure, two sources aware of the central bank's thinking said.

The RBI had said in January that effective April 5, exchanges may offer forex derivative contracts involving the rupee to users "for the purpose of hedging contracted exposure".

"The underlying exposure requirement was always there. There has been no change in that," the first source aware of the central bank's thinking said.

Brokerages who are asking clients to provide documents as proof of exposure are doing so of their own volition and have not been instructed to do so by the central bank, the second source said.

The sources declined to be named as they are not authorised to speak to the media.