Description
Revised conversion factors effective January 29, 2026 for monitoring aggregate position limits of USD 100 million across currency derivative contracts.
Summary
BSE has updated the conversion factors for monitoring aggregate position limits of USD 100 million equivalent across currency derivative contracts (GBP-INR, EUR-INR, JPY-INR). The new conversion factors will be effective from January 29, 2026.
Key Points
- New conversion factors announced for USD to GBP, EURO, and JPY
- Effective date: January 29, 2026
- USD 100 million aggregate position limit across exchanges remains unchanged
- Clients exceeding limits must provide disclosure of underlying exposure
- Trading members must ensure compliance with prescribed position limits
Regulatory Changes
Revised conversion factors from January 29, 2026:
| Currency Pair | Conversion Factor |
|---|---|
| USD to EURO | 0.86 |
| USD to GBP | 0.75 |
| USD to JPY | 153.71 |
This continues the framework established under Exchange notice No. 20150430-20 dated April 30, 2015 and notice 2018040339 dated April 03, 2018.
Compliance Requirements
- Entities: Must ensure positions across all exchanges remain within USD 100 million equivalent limit
- Clients: If position exceeds USD 100 million equivalent, must provide disclosure of underlying exposure to trading member
- Trading Members: Must ensure their positions remain within limits prescribed in para 4 of Exchange notice No. 20150430-20 dated April 30, 2015
- Previous conversion factors from notice 20250925-52 continue to apply until January 28, 2026
Important Dates
- December 26, 2025: Notice date
- January 28, 2026: Last day for previous conversion factors (from notice 20250925-52)
- January 29, 2026: New conversion factors become effective
Impact Assessment
This is a routine administrative update affecting trading members and clients dealing in currency derivatives. The change in conversion factors reflects current foreign exchange rate movements and ensures accurate monitoring of position limits across different currency pairs. Trading members need to update their internal systems and processes to reflect the new conversion factors. No change to the underlying USD 100 million position limit framework.
Impact Justification
Standard periodic update of currency conversion factors for position limit monitoring. Affects trading members dealing in currency derivatives but is routine in nature.