On July 9, 2013, Securities and Exchange Board of India, in consultation with RBI, had doubled the initial margins and extreme loss margins for dollar-rupee contracts to help stem the fall in rupee value.
Earlier this week, the capital market regulator decided to restore the margins for dollar-rupee contracts to pre-July 8, 2013 rates.
Accordingly, NSE in a notice said that extreme margins for dollar-rupee futures contracts would be revised back to original level of 1 per cent of gross open position, from 2 per cent.
Extreme loss margins on dollar-rupee futures contracts would be revised to 1.5 per cent from the existing 3 per cent levels.
The revised initial margin requirements for dollar-rupee contracts (both futures and options) would be "based on a worst scenario loss of a portfolio of an individual client comprising its positions in options and USDINR op futures contracts," NSE said.