India’s stock market regulator Securities and Exchange Board of India relaxed currency derivatives rules on Wednesday, allowing participants to continue to hold on to their open position limits even if total open interest in a currency pair falls at a stock exchange.

Market participants will, however, have to gradually bring down their open positions to comply with applicable limits within a time period specified by the stock exchanges, the SEBI said. Earlier, market participants had to reduce their open position limits in proportion to the drop in total open interest.

India allows market participants to have open position of upto 15 per cent of the total open interest, or $100 million gross open limit for USD/INR pair, whichever is higher. For banks, the position limit is 15 per cent of total open interest or $1 billion, whichever is higher.