Bank Of India Forex Rate
Union Currency Futures About Currency Futures Currency futures are standardized, exchange-traded contracts to buy or sell a currency at a specific price quondam in the future. As an essential tool to manage the risks associated with changing currency valuations, Currency futures allow market participants to lock in a currency rate for a specific time menses. At the same time, Currency futures offer a means of potential profits for those who wish to have a view on currency fluctuations, and in doing so have the chance that businesses and fiscal institutions wish to offset with electronic trading and efficient risk management systems. Substitution traded currency futurity allow Corporate and Households alike to hedge their currency adventure, to protect or increase investment returns and to merchandise in USDINR, EURINR, GBPINR and JPYINR without the need to have an underlying exposure. Product Features Comparative features for 4-permitted currency pair is given below. USD-INR EUR-INR GBP-INR JPY-INR Underlying USD-Indian Rupee (USDINR) Euro-Indian Rupee (EURINR) Pound Sterling – Indian Rupee (GBPINR) Japanese Yen – Indian Rupee (JPYINR) Trading Hours 9 a.m. to v p.m nine a.k. to 5 p.m nine a.m. to v p.m 9 a.one thousand. to 5 p.m Size of the contract USD 1,000 Euro 1,000 GBP 1,000 Japanese Yen ane,00,000 Quotation The contract would be quoted in rupee terms. However, the outstanding positions would exist in USD terms. The contract would be quoted in rupee terms. However, the outstanding positions would be in Euro terms. The contract would be quoted in rupee terms. However, the outstanding positions would be in Pound Sterling terms. The contract would be quoted in rupee terms. However, the outstanding positions would be in Japanese Yen terms. Tenor of the contract The maximum maturity of the contract would be 12 months. The maximum maturity of the contract would be 12 months. The maximum maturity of the contract would be 12 months. The maximum maturity of the contract would be 12 months. Available contracts All monthly maturities from 1 to 12 months would be made available. All monthly maturities from 1 to 12 months would be made bachelor. All monthly maturities from 1 to 12 months would be made available. All monthly maturities from i to 12 months would be made available. Settlement machinery Cash settled in Indian Rupee. Cash settled in Indian Rupee. Cash settled in Indian Rupee. Greenbacks settled in Indian Rupee. Settlement price The settlement price would exist the Reserve Bank Reference Rate for USDINR on the date of expiry. The settlement price would be the Reserve Banking concern Reference Charge per unit for EURINR on the date of expiry. GBPINR Exchange rate published by the Reserve Depository financial institution in its Press Release captioned RBI Reference Rate for US$ and Euro. JPYINR Commutation charge per unit published by the Reserve Bank in its Press Release captioned RBI Reference Rate for United states$ and Euro. Final settlement day The final settlement twenty-four hour period would be the last working day of the month (excluding Saturday). The last working mean solar day would be taken to be the same as that for Interbank Settlements in Mumbai. The rules for Interbank Settlements, including those for 'known holidays' and 'subsequently declared vacation' would exist those as laid downwards by FEDAI. Initial Margin The initial margin so computed would be bailiwick to a minimum of i.75% on the commencement day of trading and 2% thereafter. The initial margin and so computed would exist bailiwick to a minimum of two.eighty% on the kickoff day of trading and 2% thereafter. The initial margin so computed would be subject to a minimum of 3.20% on the showtime day of trading and ii% thereafter. The initial margin so computed would be subject to a minimum of 4.50% on the first day of trading and ii.thirty% thereafter. Calendar spread margin The calendar spread margin shall exist at a value of ` 400 for a spread of ane calendar month; ` 500 for a spread of two months, ` 800 for a spread of 3 months and `g for a spread or 4 months or more. . The do good for a calendar spread would continue till death of the near month contract. This is subject to change from time to time The calendar spread margin shall exist at a value of ` 700 for a spread ` one thousand for a spread of two months and `1500 for a spread of 3 months or more. The benefit for a calendar spread would continue till decease of the nigh month contract. This is subject to modify from time to time The calendar spread margin shall be at a value of `1500 for a spread of 1 calendar month; `1800 for a spread of 2 months and ` 2000 for a spread of three months or more. The do good for a calendar spread would continue till expiry of the near month contract. This is subject area to change from time to time The calendar spread margin shall exist at a value of ` 600 for a spread of ane month; ` 1000 for a spread of 2 months and `1500 for a spread of 3 months or more. The do good for a calendar spread would continue till expiry of the near month contract. This is subject to alter from time to time Extreme Loss margin Extreme loss margin of 2% on the mark to market value of the gross open up positions Extreme loss margin of 0.3% on the marking to market value of the gross open positions Extreme loss margin of 0.5% on the marker to market value of the gross open positions Farthermost loss margin of 0.7% on the marker to market value of the gross open up positions Position Limits for Banking concern The gross open positions of the customer beyond all contracts shall not exceed 15% of the total open interest or USD 100 1000000 whichever is higher. The gross open positions of the client across all contracts shall not exceed xv% of the total open involvement or EUR l million whichever is higher. The gross open up positions of the client across all contracts shall not exceed 15% of the total open involvement or GBP l meg whichever is higher. The gross open positions of the client beyond all contracts shall not exceed xv% of the total open interest or JPY 1000 million whichever is college. Client Level Position Limit The gross open positions of the client across all contracts shall non exceed 6% of the total open interest or USD 5 million whichever is lower. The gross open positions of the client across all contracts shall not exceed vi% of the total open up interest or EUR 5 million whichever is higher. The gross open up positions of the client across all contracts shall not exceed 6% of the total open interest or GBP 5 1000000 whichever is college. The gross open positions of the client across all contracts shall not exceed vi% of the total open interest or JPY 200 million whichever is higher. As per Regulatory changes from fourth dimension to time. Eligibility Only 'persons resident in India' may purchase or sell currency futures to hedge an exposure to foreign exchange rate risk or otherwise. The product is offered to the following categories of customers: a. All Exporters/Importers having a rating of CR5 and better Authorized Branches The product is being offered to all eligible customers through all our Branches. However, Treasury Co-operative, Mumbai will be the controlling Branch. Opening of Currency Futures Trading Account Treasury Branch shall result a Unique Client Code (UCC) to the Customer duly authenticated past the corresponding exchange on which customer wish to trade. The UCC volition be required by the customers for trading in Currency Futures. Mode of Trading –Online. Position Limits Our Bank has fixed the category-wise upper limits as mentioned below subject to availability of the margins : Sr. No. Client Type Maximum Limit one. Individuals, Proprietorship Firms, HUFs USD one,000,000 equivalent ii. Clients other than above category USD 5,000,000 –equivalent Margins tin can be deposited in Cash or Term Deposit . Blazon of Margins: Initial Margin – Minimum 2% of the Notional Value of Contract or college every bit per Exchange requirement based on the volatility of the market. Extreme Loss Margin – Minimum 2% on the marking to market place value of the gross open position or equally specified past the exchange from time to time. Marker to Marketplace Settlement – The mark to marketplace gain and losses shall be settled in cash before the get-go of trading on the next day i.e. on T+0 day basis. Upfront Allotment of Required Margin - To trade in currency futures contract, the client needs to give the required margins upfront to the Bank. The margin is presently fixed at ten% of the face up value of the contract merely can be modified past the Depository financial institution depending on marketplace volatility. For example if client buys a about calendar month contract at Rs 67 (i.e notional value of contract :67*1000=67000), he needs to pay upfront a margin of 10% approx) which amounts to Rs 6700 (10%*67,000) Documentation The following documents are required to be submitted for opening of Currency Futures Trading account, which will be as per KYC norms and Commutation requirements:- i. Client Registration Form (Separate forms for Individuals/Corporate) Afterward all the KYC formalities are washed, Depository financial institution will open up client account in Union Currency Futures and issue Unique Client Code to each client. All the details volition exist uploaded to the desired exchange of the client. Mandatory/Not-mandatory listing of documents Mandatory and Non-Mandatory documents as per SEBI DOCUMENT TYPE BRIEF SIGNIFICANCE Private Client Registration Grade Mandatory This grade is designed to capture the personal information of the client e.k. identity, PAN number, accost, bank details for registration of the client in the Currency Derivatives segment (CDS) of the Exchange. Client is as well required to choose the Exchange in which he wishes to trade for currency derivative segment. This is a KYC certificate. Client Registration Form for Mandatory Mandatory This form is designed to capture the information of the Not-Private clients like proper name of the company, registered office address, banking concern details, name of promoters, whole time directors etc. for registration of the customer in the CDS segment of the Substitution. Client is besides required to choose the Exchange in which he wishes to merchandise for currency derivative segment. This is a KYC document. Board Resolution Non – Mandatory Lath resolution is required to be given by the company resolving the approval of the Board to undertake trading in Currency Futures and list all the persons who volition human action as Dealers and/or authorised signatories. Agreement between Trading Member and Customer Mandatory This agreement contains 24 clauses and is to be executed by the Client for the purpose of Registration on Currency Derivative Segment of the Exchange. Member – Client Agreement (For Internet Based Trading) Non – Mandatory This agreement contains eleven clauses and is to exist executed by the Clients who are seeking to avail the net based trading facility. Alphabetic character of Dominance Non – Mandatory The Client authorises Union Bank through this letter to debit his account towards margin, brokerage and squaring off open up positions towards margin shortfall. Alphabetic character of Consent Non – Mandatory The Client through this letter consents to recording of phone conversations and confirmation of transactions through electronic mode. Omnibus Asking Alphabetic character Non – Mandatory The Client through this letter authorises the bank to accept orders through different modes of communication and confirms that such orders shall constitute confirmed order instructions. Investors' Rights and Obligations (two copies) & Run a risk Disclosure certificate for Currency Derivatives Segment (ii copies) Mandatory The document states the adventure in trading and Investors' rights and obligations equally per the model format specified by SEBI. Applicant should have clearly read and understood both the documents before signing the aforementioned. Policies and Procedures Mandatory This document contains policies and procedures which a Trading Fellow member is required to disclose to the Client equally per SEBI circular no. MIRSD/SE /Cir-xix/2009 dated Dec 3, 2009. Running Account Authorisation Not – Mandatory The Client authorises Union Banking company through this annually renewable alphabetic character to maintain a running account to retain the funds, deposited equally margin money or received equally pay-outs from the Exchanges Brokerage/Other Charges • Digitally Signed Contract Notes Treatment of Inactive account & Process of reactivation- Till the margin money is deposited the account will be marked as "Inactive". As well if any customers fails to fulfill KYC or Whatever OTHER regulatory requirement from time to time , fifty-fifty though sufficient margin money is with the Banking concern, it'due south account condition will be treated as "Inactive" and volition be prohibited from trading till all the requirements are fulfilled. Take chances Disclosures As Currency Futures permit trading without a demand of underlying, it will create open position to the customers. As the toll of currency is highly volatile, it may entail heavy losses in the form of losing the margin deposited by the customer. The customers are advised to read the Take a chance Disclosure document to know most the risks involved in the Currency Futures trading. In case of any clarification, delight contact: SEBI Reg. No.: NSE: INE231308946; MCX-SX: INE261314038; BSE: INE271382546 | Membership Lawmaking: NSE: 13089; MCX-SX: 1013; BSE: 4031 Attending investor:
CURRENCY FUTURES FEATURES
b. Big Corporate/SME A/c holders having a rating of CR5 and better
c. Any other customer based on his credit assessment.
ii. Risk Disclosure Certificate
3. Agreement between Trading fellow member and Client
4. Undertaking cum Indemnity for direct access to Bank'southward dealing room
v. Authorization letter to Depository financial institution for sending Contract Notes/Statements electronically
All these documents are fastened herewith.
Pursuant to SEBI circular no. MIRSD/ SE /Cir-19/2009 dated December iii, 2009; the clients of currency derivative segment are informed every bit under of the post-obit:
Corporates, Firms and Others
Reports
• Daily Activeness Study through e-mail
If the client has no open up position & is not trading for more 6 months so the business relationship will be treated every bit inactive & will be suspended from trading.
Client, who is desirous of reactivating the account post intermission, will have to transport written request for reactivation.
Derivatives Back Office,
Union Bank of India,
tertiary Floor, Treasury Branch,
Wedlock Bank Bhavan,
239, Vidhan Bhavan Marg,
Nariman Indicate,
Bombay – 400 021
Tel. No. 022-22892112, 022-22892143 & 022-22892142
Disclaimer :
Currency Futures are subject to marketplace risk. Please read the Risk Disclosure Document and Investors' Rights and Obligations carefully before dealing in Currency Futures. In pursuant to SEBI circular no. SEBI/MRD/SE/Cir-42/2003 dated nineteen November 2003 and subsequent circulars, the Depository financial institution wishes to disclose that the banking concern is engaged in dealing in Currency Futures for its proprietary volume in addition to offer the product for the Client.
For any query/complaints contact 
Forbid unauthorised transcation in your account -> Update your mobile number/e-mail ids with your Depository Participants/Stock Broker. Receive information of your transaction direcly from Commutation on your mobile/e-mail at the stop of the day.
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Source: https://www.unionbankofindia.co.in/english/ibd-treasury-currencyrate.aspx
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