If a trader's exposure exceeds $100 million (i.e., notional contract value), they must designate either a custodian participant or an authorized dealer. However, for traders with a smaller exposure, a declaration stating that they are trading currencies to hedge their contracted exposure will suffice.
Failure to provide this declaration will result in the inability to initiate new positions in the currency segment from April 4th. However, exiting existing positions will still be permitted. It's advisable to monitor existing open positions closely, as liquidity may decrease leading up to Friday, April 5th, 2024, when the RBI circular takes effect.
https://zerodha.com/marketintel/bul...-eligibility-to-trade-in-currency-derivatives
Failure to provide this declaration will result in the inability to initiate new positions in the currency segment from April 4th. However, exiting existing positions will still be permitted. It's advisable to monitor existing open positions closely, as liquidity may decrease leading up to Friday, April 5th, 2024, when the RBI circular takes effect.
https://zerodha.com/marketintel/bul...-eligibility-to-trade-in-currency-derivatives