Capital markets regulator SEBI raised the exposure limit under exchange-traded currency derivatives trading for residents and FPIs to USD 100 million across all currency pairs involving the Indian rupee. What is the meaning of P in FPIs?

BANKING GENERAL KNOWLEDGE

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Capital markets regulator SEBI raised the exposure limit under exchange-traded currency derivatives trading for residents and FPIs to USD 100 million across all currency pairs involving the Indian rupee. What is the meaning of “P” in FPIs?

A	Foreign Portfolio Initial
B	Foreign Portfolio International
C	Foreign Portfolio Indian
D	Foreign Portfolio Investment

Explanation:

Detailed explanation-1: -Trading Member Level Position Limits: 250 cr or 15% of the total open interest in Index Options whichever is higher and for Index futures the Trading Member position limits are Rs. 250 cr or 15% of the total open interest in Index Futures whichever is higher.

Detailed explanation-2: -SEBI was established in 1988 under the Securities and Exchange Board of India Act, 1992. The organization protects investors’ interests in stock exchanges (equity), debt markets, mutual funds, and derivatives trading (futures & options). It protects investors against market fraud and malpractices.

Detailed explanation-3: -The FII Regulations provide that investments by each FII/ SA shall not exceed ten percent of the total issued capital of an Indian company, while in the FPI regulations the applicable investment limit for each FPI is below ten percent.

Detailed explanation-4: -Position Limits for Foreign Portfolio Investor Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher. Gross open position across all contracts shall not exceed 6% of the total open interest or USD 10 million, whichever is higher.

There is 1 question to complete.