RBI restricts rebooking of cancelled FX derivative contracts to curb volatility

The Reserve Bank of India issued two circulars imposing restrictions on rebooking of cancelled foreign exchange derivative contracts involving INR, effective immediately. This is a regulatory tightening aimed at reducing speculative activity and stabilizing the rupee amid evolving market conditions. The measure signals RBI's proactive stance to manage FX volatility, potentially impacting market liquidity and hedging strategies.